cityam 10/06/2010

8/9/2019 CityAM 10/06/2010

http://slidepdf.com/reader/full/cityam-10062010 1/32

FTSE 100 ▲ 5,085.86 +57.71 DOW t 9,899.25 -40.73 NASDAQ t 2,158.85 -11.72 £/$ ▲ 1.45 +0.01 £/¤ 1.21 unc ¤/$ 1.20 unc

www.cityam.comIssue 1,152 Thursday 10 June 2010 FREE

SOCGENHITS BACK

KERVIEL BRANDED

A LIAR BY EX-

BOSS P3

THE BEST BEERS TO DRINKDURING THE WORLD CUPFLAVOURS PUT TO THE TEST P28

BUSINESS WITH PERSONALITY

Certified Distribution

5/04/10 - 2/05/10 is 106,285

US on the

warpathover BP

US--LISTED shares of BP plunged near-ly 16 per cent last night, hitting theirlowest level since 1996 as politicalpressure on the company over its han-dling of the Gulf of Mexico oil spillmounted and investors worried itmight be forced to suspend its divi-dend.

The plunging share price, cameamid a growing backlash against theoil giant with a group of US Senators

yesterday writing to chief executive Tony Hayward urging him to suspendthe dividend. The oil major shouldhold off making its payments toshareholders until the oil spill isplugged and under control, wrotemore than 30 Senators in the letter.

The letter came after BPannounced intentions to pay out itsfirst quarter dividend on 21 June.

Despite fears over the increasingly aggressive rhetoric used by USPresident Barack Obama, PrimeMinister David Cameron refused tocomment directly on the issue. A gov-ernment spokesman said the oil spillremained a corporate issue.

Cameron’s stance was in direct con-trast to the views of the majority of panellists on the City A.M. /Politicshome.com Panel who said thePrime Minister should make a state-ment in support of embattled BP.Forty-four per cent of panellists said

the Prime Minister should make astatement backing the oil major, while just 13 per cent said he shouldcriticise BP.

BY EMMA SADOWSKI

ENERGY▲

OFT chief executive John Fingleton will announce the probe at 7am today

THE Office of Fair Trading (OFT) willtoday launch an investigation focus-ing on the prices investment bankscharge for services such as advisingcompanies and underwriting shareoffers heaping pressure onto analready embattled industry.

“We can confirm that we arelaunching the early stages of a mar-ket study into equity underwriting,”an OFT spokesman confirmed to City

A.M. last night but refused to give fur-ther details.

The OFT has not yet indicated whatareas the study will cover, but it isexpected to examine whether parts of the work done by investment banksmay affect competition or consumers.

Some of the world’s biggest invest-ment banks including GoldmanSachs, Citigroup, UBS and MorganStanley will come under scrutiny inthe probe set to be officially announced at 7am today.

The announcement has come as a bolt from the blue for many banks, with several confessing last nightthey had not heard of any plans for aninvestigation.

But the enquiry comes soon aftersome of the biggest underwriting and

advisory fees ever seen in the City.Prudential was recently left with anunderwriting fees bill of roughly £81m after its botched attempt to buy

TOP CITY BANKSHIT BY OFT PROBEBY MARION DAKERS

POLITICS▲

AIA, worth around 3.5 per cent of thetotal value of the deal – a sum oneinvestor said was “verging on theobscene.”

There has been a steep increase inunderwriting fees across the boardsince September 2008 when the col-lapse of Lehman Brothers drove mar-

ket volatility to peak levels. AverageUK underwriting fees are now thehighest in Europe at around 3.5 percent, just ahead of Germany and

about one per cent higher than thosecharged in markets like Scandinaviaand Switzerland.

The chorus of dissatisfaction overthe size of rights issue underwritingfees and the high proportion collect-ed by the banks is now reaching feverpitch. The Institutional Shareholders

Committee trade body, representinga third of UK investors, has launchedits own probe into the issue and thelikes of business secretary Vince

Cable and former Treasury ministerLord Myners have condemned the sta-tus-quo. “Most bankers tell me they can’t understand why companies arecontinuing to pay the level of feesthat they are,” said Lord Myners.

“The problem with investment banking fees is that investment

bankers are paid for doing dealsrather than for doing successfuldeals.”

ALLISTER HEATH: P2

WORLD’S TOP TEN RIGHTS ISSUES ANDUNDERWRITING FEES

ISSUER DATE PROCEEDS FEES($ bln) (% )

1. RBS Jun 08 24.4 2.8

2. HSBC Apr 09 19.4 2.6

3. Fortis Oct 07 19.3 0.7

4. UBS May 08 15.4 1.7

5. Rio Tinto Jul 09 12.3 2.6

6. Enel Jun 09 11.1 0.9

7. Imperial Tobacco Jun 08 9.9 1.9

8. Santander Nov 08 9.3 1.7

9. Sberbank Rossii Feb 07 8.8 0.1

10. SocGen Feb 08 8.4 1.2

8/9/2019 CityAM 10/06/2010


News2 CITYA.M. 10 JUNE 2010

Debt crisis tohurt growthPROLONGED uncertainty and turmoilin the Eurozone risk derailing the world economy recovery if heavily-indebted developed countries have toswallow austerity medicine morequickly, the World Bank said yester-day in its latest Global EconomicProspects 2010.

While the World Bank expects glob-al GDP growth to be 3.3 per cent in2010 and 2011, and 3.5 per cent in2012, an extended sovereign debt crisiscould cut growth to 3.1 per cent in2010, followed by 2.9 per cent and 3.2per cent in 2011 and 2012.

“Deeper and more widespreadeffects might arise if the situationcauses investors to become signifi-cantly more risk averse; or in a lesslikely scenario, if there is a major cri-

sis of confidence, prompted by (orcausing) a default or major restructur-ing of high-income sovereignEuropean debt.”

The global recovery will be powered by developing countries, whichshould see growth rates in excess of 6per cent for the next three years. Incontrast, the World Bank only proj-ects growth in high-income countriesto strengthen from 2.3 per cent this year to 2.7 per cent in 2012.

The report follows comments by the IMF’s Naoyuki Shinohara, whosaid that Asia would lead the recovery.

BY JESSICAMEAD

WORLD ECONOMY▲

Populist reaction to BP is dangerous

THERE is much that is ugly about theBP fiasco. It goes without saying thatthe firm hasn’t covered itself in glory,that Tony Hayward, its CEO, has suf-fered from foot in mouth disease andthat parts of the US coast are reelingfrom an en environmental catastro-phe. I’ve criticised BP in the past and will continue to do so. But the reac-tion of many commentators, as well asof Barack Obama’s administration,has been even less edified and shows, yet again, that short-sighted populismis now the order of the day when itcomes to the relationship between

international business and politics.Obama and his Democratic Party,

for all their pretensions to globalismand love affair with international bureaucracies, are really narrow

nationalists. They have relentlessly played the xenophobia card whendealing with BP, which they usually refer to as British Petroleum; that is soeven though most of BP’s US opera-tions are manned by Americans andare made up of former US firms pur-chased by BP. The authorities havescandalously downplayed the role inthe crisis played by US firms. BP may be domiciled in the UK but it is a corecomponent of America’s energy infra-structure: the fact that it was develop-ing new sources of oil for USconsumers (and hence reducing theirreliance on the Middle East) ought tosay it all. It even supplies the USarmed forces with petrol.

Countries should believe in freemarkets and treat all firms equally,regardless of origin; yet this is clearly not happening in BP’s case. There

comes a time when personal attacks, bullying and threats of part-nationali-sation towards a UK firm and UK citi-zens should start to ring alarm bells –that time is now, especially given that

the US authorities seem to be believethat they can decide BP’s dividend pol-icy and in Obama’s case, talk of “kick-ing ass” and suggest Hayward be fired(this matters: BP’s payouts represent£1 out of every £7 made across UK list-ed companies and the firm is also oneof Britain’s biggest taxpayers). TheForeign Office should acknowledgethe spill has been a disaster – but itshould also tell the Americans thatthey need to calm down.

There is now growing fears amongBritish businesses that it will be hard-er for them to operate in the US infuture; this could even become anissue for a firm such as BAE Systems, which relies on the American market.So much for the “special relation-ship”: Britain’s support for Americanforeign policy counts for nothing(Obama’s biography made his dislike

of the UK very clear). There is one caveat to this: we

shouldn’t forget the anti-Kraft hysteriaas the US food giant stalked and ulti-mately gobbled up Cadbury. Of

course, Kraft made mistakes; but theugly protectionism of many politi-cians and much of the media meansthat they are in a much weaker posi-tion to criticise the US today. Thatsaid, at no time did the anti-Kraft sen-timent become as virulent and asextreme as the anti-BP rhetoric thatnow dominates America’s airwaves.

There is another issue. The public isright to want good safety measuresand less pollution. But it is wrong toassume that this risk can be abolishedentirely. Even the best-managed firmin the world will sometimes sufferfrom oil spills or other problems, espe-cially when they have to explore indangerous and inaccessible places. This is spill is clearly a disaster. But alittle bit more rationality and a littleless populism are desperately needed.

[email protected]

FEDERAL Reserve chairman BenBernanke said yesterday the US eco-nomic recovery was on a solid footing but cautioned it could be years beforethe jobs lost during the deep reces-sion of 2008-2009 are restored.

While Bernanke said the economy had made an “important transition”to relying less on government sup-port, his emphasis on the struggles of the US jobs market suggested the cen-

tral bank was in no rush to raise inter-est rates. “A significant amount of time will be required to restore thenearly 8.5 million jobs that were lost,”he told the House of RepresentativesBudget Committee.

That view was bolstered by a reportfrom the Fed that said the economy strengthened last month. “Economicactivity continued to improve sincethe last report across all twelveFederal Reserve districts, but many districts described the pace of growthas ‘modest’”, it said in its Beige Book.

BYMARIONDAKERS

US ECONOMY▲

Bernanke is still cautious Federal Reserve chairman Ben Bernanke is in no rush to raise rates Picture: REUTERS

NEWS | IN BRIEF

Virgin and BSkyB appeal rulingVirgin Media has appealed against anOfcom decision forcing BSkyB to chargecompetitors less for its football cover-age, saying the ruling doesn’t go farenough. BSkyB has also appealed thecommunication watchdog’s decision,saying the regulator “acted unlawfully”

in imposing conditions on its programmepackages. Virgin said the methods usedby Ofcom to calculate the maximumpricing of Premier League games was“flawed”, and has lodged a challengewith the Competition Appeals Tribunal.The three-year probe into UK pay televi-sion has angered many broadcasters.

Euro corporate bonds dry upEuropean banks sold $11.7bn (£8bn) of corporate bondS in the last six weeks toFriday – less than a tenth the amountthey sold this time last year, accordingto Dealogic. They have raised less frommainstream capital markets in this peri-od than in any time since 1995. Banksare also said to be under pressure fromregulators to lengthen the averagematurity of their debt, in order to lessenreliance on risky short-term fundingmarkets.

The IMF’s NaoyukiShinohara said adversedevelopments inEurope could haveimplications for Asia

EDITOR’S LETTER

ALLISTER HEATH

7th Floor, Centurion House,24 Monument Street,London, EC3R 8AJTel: 020 7015 1200 Fax: 020 7248 1729Email: [email protected] www.cityam.com

EditorialEditor Allister HeathDeputy Editor David HellierNews Editor Ben GriffithsNight Editor Katie HopeAssociate Editor David CrowLifestyle Editor Zoe StrimpelArt Director Darren SoulsbyPictures Alex Ridley

CommercialSales Director Jeremy SlatteryDeputy Sales Director Harry OwenHead of Distribution Nick Owen

Editorial StatementThis newspaper adheres to the system of

self-regulation overseen by the Press ComplaintsCommission. The PCC takes complaints about theeditorial content of publications under the Editor’sCode of Practice, a copy of which can be found at www.pcc.org.uk

Printed by Newsfax International,Beam Reach 5 Business Park,Marsh Way, Rainham, Essex, RM13 8RS

Distribution helplineIf you have any comments about the distributionof City A.M. Please ring 0207 015 1230, or [email protected]

BACKLASH OVER INDIAN FLOAT RULESIndia is facing a growing private sec-tor backlash against a rule changethat will lead to a flood of more than$50bn of new shares being listed overthree years. There are concerns that the movecould damage the country’s stock market and hamper economicgrowth. The Finance Ministry has orderedcompanies to raise the portion of their shares that are publicly heldfrom the current 10 per cent to 25 percent.

SEC PROBES SECOND GOLDMAN ASSET The US Securities and ExchangeCommission has stepped up itsinquiries into a complex mortgage- backed deal by Goldman Sachs that was not part of the civil fraud charges

filed against the bank in April,according to people close to the mat-

ter.SEC interest in Hudson Mezzanine

Funding, a $2bn collaterised debtobligation, comes amid settlementtalks with Goldman over accusationsthat the bank defrauded investors in Abacus, a similar CDO.Goldman has denied the SEC’s com-plaint.

EU URGED TO SPEED FINANCE RULESFrance and Germany put on a show of unity yesterday in order to urge fel-low European Union leaders to accel-erate efforts to tighten financialregulation and clamp down on shortselling.In a joint letter to José ManuelBarroso, president of the EuropeanCommission, Nicolas Sarkozy, theFrench president, and Angela Merkel,the German chancellor, called forproposals within a month to regulatetrading in sovereign credit defaultswaps – a form of insurance against

government debt default – and shortselling.

INSURANCE TAX PREMIUMS MAY RISESpeculation is growing that theGovernment is planning to at leastdouble the 5 per cent tax rate on gen-eral insurance premiums in thismonth’s emergency Budget.Increasing the rate charged on itemssuch as car, household and pet covercould raise billions of pounds in addi-tional tax revenues, but would driveup the cost of policies and could forcesome people to stop buying essentialprotection, experts said.

FOXCONN TO PASS ON WAGE RISE COSTFoxconn, the Taiwanese company that assembles gadgets for Apple, Delland Sony, said that it would startpassing on to its customers the cost of massive wage rises at its Chinese fac-tories. The news came only a day afterFoxconn told workers at its Shenzhen

plant in China that it would raisingtheir basic salary by 70 per cent.

SIR FRED BUYS £3.5M PROPERTYSir Fred Goodwin, the disgraced banker blamed for the near-collapseof Royal Bank of Scotland, has boughta secluded home that has beendescribed as one of Edinburgh’s finesthouses. The £3.5m property was originally built by Graeme Souness, the formerRangers manager, and has beenredesigned and extended since.

US PE HIT OUT AT INTEREST TAX PLANS The American private equity industry has warned that plans to more thandouble the US tax rate on investmentpartnerships could lead to a sharpreduction in the amount of money being invested in the economy and aloss in jobs. The warning comes after three yearsof open discussion on the most appro-

priate tax code for private equity man-agers, venture

ENEL TO TEST NEW FORM OF SOLARPOWERIn the industrialised Eastern Siciliantown of Priolo Gargallo, Italian ener-gy company Enel is about to begintesting a new form of solar powerthat, it says, has the potential to dis-place older technology.In the coming weeks, Enel will switchon a power plant with a generationcapacity of up to five megawatts,linked to an adjacent 752MW gas-fired facility.

FRANCE SELLS BUILDINGS TO CUT DEBTOther countries are looking to priva-tize state-owned companies to cut thedebt. France is looking to sell min-istry buildings, royal hunting lodgesand 1,700 properties to chip away atthe country’s record-high debt whilegetting rid of the high-maintenance

part of the state’s vast property port-folio.

WHAT THE OTHER PAPERS SAY THIS MORNING

8/9/2019 CityAM 10/06/2010


*This promotion is valid for all online trades in stocks and shares and other appropriate investment instruments listed and trading on the London Stock Exchange or other recognised exchanges where we may execute your instruction, made available to trade by Barclays Stockbrokersand placed within a MarketMaster®, Investment ISA or PensionMaster (SIPP) (subject to SIPP investment restrictions as set by the SIPP provider). Trades will be charged at the commission rate of £4.42 for as long as England remain in the tournament in South Africa between 12 June 2010 and 11 July 2010. When England are eliminated, online trading commissions will revert to standard pricing with immediate effect, or at the appropriate date Barclays Stockbrokers choose, that date being no later than 11 July 2010. If England win the tournament, this offerwill end on 11 July 2010. Limit orders, stop orders and trailing stop orders that are executed within the duration of the promotion will be charged at the promotional rate. The offer is available to new and existing clients and applies to each individual account opened or held. Normalstamp duty, PTM Levy, account admin fees and standard terms and conditions relating to your Barclays Stockbrokers account will apply. Please refer to the promotion’s full terms and conditions for details. The price and v alue of investments and their income fluctuates: you may getback less than the amount you invested. How an investment performed in the past is not a guide to future performance.

**Lines are open from 7.30am to 7.30pm Monday to Thursday and from 7.30am to 6pm Friday, excluding bank holidays. Calls to 0845 numbers from a BT residential line will cost no more than 4p per minute, plus 9.9p call set-up fee (correct as at April 2010). The price on non-BTphones may be different; please check with your service provider. You can only use these numbers if you are calling from the UK; if calling from outside the UK, please call +44 141 352 3909. Calls may be recorded to monitor the quality of our service, to check instructions and forsecurity purposes.

We are changing our tactics

Online trades for £4.42

As the world turns its attention to a summer of football in South Africa, we have

decided to change our tac tics and lower our trading commission to just £4.42*, from

when England’s participation in the tournament starts on 12 June 2010, until they win

the trophy or exit the competition.

You will be able to trade equities, Exchange Traded Funds (ETFs), Exchange Traded

Commodities (ETCs), Investment Trusts, REITs, covered warrants, turbos and structured

products for just £4.42 per online trade. But remember that you cannot win them all

and the value of your investments can fall as well as rise.

Whatever the formation, at this price you will be hoping for extra time!

Get in on the action and open an account at

www.stockbrokers.barclays.co.uk/offeror call us on 0845 300 4442**

and play to the final whistle.

ROGUE trader Jerome Kerviel was branded a liar who took “inhuman”risks by a former boss yesterday dur-ing a trial over trading losses that

brought French bank SocieteGenerale close to collapse.

The bank’s former head of invest-ment banking, Jean-Pierre Mustier,hit back at Kerviel’s claims in courtthat SocGen tolerated unauthorisedtrading positions that eventually cost

the bank €4.9bn (£4bn) to unwind in2008.

“You lied to me all along,” an ani-mated Mustier told Kerviel in thecramped courtroom in the Palais de

Justice, before telling judges Kervieltook “inhuman” risks that would betermed “criminal” in the UnitedStates.

Kerviel , 33, risks five years in jailand a €375,000 fine if found guilty of charges of breach of trust, computerabuse and forgery. His trial began on

Tuesday amid a media frenzy overone of the most famous faces of thefinancial crisis in France.

The ex-trader has said his bossesencouraged him to take risks and hislawyer has painted him as a“pawn.”SocGen says he acted aloneand denies tacit complicity.

“We encouraged traders to know how to take risks. We did not encour-age them to take risks,” said Mustier,

who quit SocGen last August amid aninsider trading probe that also target-ed non-executive director Robert Day.

Lawyers quizzed Mustier over theprobe Wednesday, but the ex-bankerresponded by saying the regulator'ssanctions committee planned to rec-ommend his acquittal.

Rogue traderKerviel calleda liar by boss BRITAIN’S huge deficit should be

tackled with £4 in spending cuts forevery £1 in tax hikes, the CBI said.

In a letter to Chancellor GeorgeOsborne yesterday ahead of the emer-gency Budget on 22 June, the CBI

warned that the public financesshould be repaired without damag-ing growth prospects.

It called for a shake-up of publicservices provision to save money through moves such as job cuts andsharing back office functions.

CBI deputy director-general JohnCridland said: “A radical re-engineer-ing of public services is a must if dam-aging tax rises are to be avoided. Only an effective cost reduction strategy can safeguard future growth.”

The CBI has “major concerns” overproposals to hike capital gains tax to

similar levels as income tax and wants a broad definition of businessassets to prevent deterring start-ups.

It also wants tax credits forresearch and development protectedas well as capital spending levels to berestored as soon as possible.

“The UK’s future economicprospects depend on the ability of firms across the country to createnew jobs and win orders. Increasingtaxes makes this more difficult,”Cridland warned. MILIBAND: P7

THE Institute of Directors, led by director general Miles Templeman,has warned that board members arestruggling to cope with the amountof new regulation, in guidelines pub-lished today.

The Director’s Handbook includesadvice on dealing with the reams of law and regulation that have beenintroduced since the credit crisis.

In a sign of the ever-increasing vol-ume of new rules, the book does notinclude information on the FinancialReporting Council’s corporate gover-nance code requiring directors to facere-election every year – revealed justtwo weeks ago.

Since the last edition was printedin 2007, the Companies Act 2006 hastaken full effect. This codifies theduties of directors and affects a num-

ber of areas from conflicts of interestto social responsibility.

CBI: Cuts mustbear down onpublic sector

IoD says board memberscan’t cope with new regs

IoD head Miles Templeman warns on increasing red tape Picture: REUTERSBY STEVE DINNEEN

ENFORCEMENT▲

ECONOMY▲

NewsCITYA.M. 10 JUNE 2010

BYMARION DAKERSREGULATION▲

3

Former Societe

Generale trader

Jerome Kerviel told a

French court that he

often broke risk limits

8/9/2019 CityAM 10/06/2010


8/9/2019 CityAM 10/06/2010


TRAVEL JUNE - JULY

Book until midnight 10.06.10. Subject to availability. Terms and conditions apply, see Ryanair.com for details.

Fares exclude optional fees/charges.

10£ ONE WAY

FLIGHTSFROM

FLIGHTS FROM LONDON (GATWICK, LUTON & STANSTED)

GERMANY and France called forEuropean Union-wide curbs on nakedshort-selling yesterday, a month afterBerlin plunged financial markets intochaos with a unilateral ban.

In a joint letter to EuropeanCommission president José ManuelBarroso, Chancellor Angela Merkeland President Nicolas Sarkozy saidresurgent volatility raised “legitimatequestions” around credit defaultswaps and short-selling.

They said: “In the face of recentdevelopments, we believe the ECshould urgently accelerate efforts toachieve stricter controls on the mar-kets for CDS on bonds and short-sell-ing, and put forward all possiblemeasures in this area even before the

July meeting of the Economic andFinancial Affairs Council.”Politicians are desperate to get a

grip on Eurozone markets after their €750bn (£620bn) stability packagefailed to entirely alleviate concernsaround Greece, Spain and Portugal. The EC, which has promised to bringin legislation by October, welcomedthe communiqué and said “concreteproposals” on short-selling would bepublished in the summer.

But any indication of hurry will begreeted with alarm by market partic-ipants, who criticised Germany forundermining confidence with its sur-prise ban on naked shorting andlashed out at Brussels for its hastily-assembled hedge funds directive.

Elisabeth Afseth of EvolutionSecurities said: “The risk you have isthe same we had with the overnight ban coming out of Germany.Investors will price in regulatory risk and push yields up further.”

The continent’s woes will be thefocus of a summit of the 27 EU lead-ers on 17 June.

EU urged toban shortingBYOLIVER SHAH

ECONOMY▲

SMALLER Spanish banks are losingaccess to the European repo marketdue to concerns Spain could be head-ing for a debt crisis along the lines of EU partner Greece.

The repo market is wary of smallerSpanish lenders because of their realestate losses and because they can

only offer Spanish government bonds as collateral.

Spanish banksface repo issuesBANKING

▲

PORTUGAL’S Treasury chief ruled outdrawing on the Eurozone aid pack-age, citing a successful bond sale anda strong economic recovery in thefirst quarter, which the statisticsagency revised upwards.

Treasury Secretary Carlos Pina saidthe sale of €1.5bn (£1.3bn) in two bond

maturities “confirmed the confi-dence investors have in Portugal”.

Portugal: Wewill not take aidECONOMY

▲

GREECE will receive the second instal-ment of a €110bn (£90bn) bailoutfrom the European Union and theInternational Monetary Fund (IMF)on schedule in September, its financeminister said yesterday.

“Of course [the second payment] issecure,” George Papaconstantinoutold reporters during a press briefing.

Greece has promised to ramthrough deficit-reduction measurestotalling €45bn over 2010-2013 to nar-row its budget gap by an unprece-dented 11 percentage points of GDP.

EU and IMF officials are due in Athens on Monday to start a review of the cash-strapped country’s financesand reforms.

“We will liaise with them andreview the budget’s implementation. They will take decisions in August

and the payment will be inSeptember,” Papaconstantinou said.State revenues in the first five

months of 2010 rose more than eightper cent year-on-year, while expendi-ture was down more than 10 per cent. The deficit in the same period had been slashed by some 40 per cent.

“This reduction exceeds the deficittarget, even before a raft of measureshave started to take effect,”Papaconstantinou said.

BYHARRYBANKSECONOMY▲

Focus on Sovereign Debt Crisis 5CITYA.M. 10 JUNE 2010

DUTCH BALLOT TO DETERMINE CUTS

DUTCH voters went to the polls yesterday in an election to determine the extent of thecountry’s austerity measures. A narrow victory is expected for the centre-right People’s

Party for Freedom and Democracy. The snap election was called in February following the collapse of Prime Minister Jan Peter Balkenende’s coalition. Picture: GETTY

Greece to tap second part of €110bn bailout in September

8/9/2019 CityAM 10/06/2010


8/9/2019 CityAM 10/06/2010


News 7CITYA.M. 10 JUNE 2010

BANK of Ireland yesterday sent a wel-come positive signal to fellow trou- bled Irish lenders by securing a strong94.6 per cent take-up for its €1.7bn(£1.4bn) cash call.

The success of the bank’s 3-for-2rights issue, which was at a price of €0.55 per new share, a 41.7 per centdiscount to the theoretical ex-rightsprice, paves the way for similaractions later this year from AlliedIrish Bank and Bancassurer Irish Life

& Permanent. Bank of Ireland is led by chairman Pat Molloy.

The Irish government, which holdsa 36 per cent stake in Bank of Ireland,took up its full €600m quota of rights.

The proceeds of the rights issueform a large part of Bank of Ireland’s

€3.4bn recapitalisation drive, whichalso included an institutional plac-ing, a debt for equity swap and theconversion of some state preferenceshares into ordinary equity. The bank has now comfortably exceeded theseven per cent equity tier one capitalratio target set for it by the govern-ment, with a ratio of eight per cent.

The move means that Bank of Ireland has escaped majority stateownership – a feat unlikely to berepeated by Allied Irish, which needsto plug a much larger capital short-fall of €7.4bn. Bank of Ireland will use

some of the proceeds to pay back war-rants from the Irish government.

The rights issue was fully under- written by Citigroup, Credit Suisse, J&E Davy, Deutsche Bank and UBS, which placed the rump later on inthe day yesterday at €0.75 per share.

Irish bankingcash calls off to good start

Pru shareholders bickerover who should resign

INSTITUTIONAL investors are bicker-ing over which Prudential head they want on a plate as shareholderanger grows after the group’s botched $35.5bn (£25bn) bid to buy AIA.

There is some momentum behinda move to oust Prudential chief execu-tive Tidjane Thiam, but some largeshareholders said chairman Harvey McGrath’s position is even harder todefend than his CEO’s.

“If someone has to go, it should bethe chairman and not the chief exec-utive,” said one top-20 investor,speaking on condition of anonymity.

Thiam and McGrath have begunmeetings with top shareholders asthey seek to pacify investors enragedover the “bungled” handling of thedeal to acquire AIG’s Asian arm.

Another large shareholder who will meet Thiam this week said: “If investors want someone’s head on aplate, it should be the chairman’s. Forhim to agree for his chief executive totake a job at Société Générale at the beginning of this whole exercise was just crass judgement.”

But other large investors still say the buck stops at Thiam’s door.

“Subject to what we hear this week, Thiam’s position is getting increas-ingly untenable,” said another.

BYVICTORIA BATES

FINANCIAL SERVICES▲

LABOUR leadership contender EdMiliband yesterday said he wouldmake the 50p income tax rate perma-nent if he became Prime Minister.

The former energy minister indicat-ed there would be no return to the pro- business days of New Labour if he winsthe party’s top job, despite claimingthe 50p rate was a temporary measure while in office.

“I would keep it in place because itensures a fair contribution from peo-ple who earn in a year what many peo-ple earn in a decade,” he said.

Miliband’s comments came as nom-inations for leadership closed, withleft winger Diane Abbott winning asurprise place on the ballot paper.

The MP for Hackney becomes thefirst black person to contest the posi-tion, after a raft of late nominations

pushed her past the threshold of 33MPs.

She will fight for the leadershipagainst former foreign secretary DavidMiliband, Ed Miliband, former chil-dren’s secretary Ed Balls and Andy Burnham, the former health secretary.

Ed Miliband: Iwould keep the50p top rate

INSURANCE▲

Bank of Ireland’s chairman Pat Molloy led the successful rights issue Picture: PA

ADVISING Bank of Ireland on itsrights issue were a pairing of Irishboutique IBI Corporate Finance, thebank’s retained financial adviser, and

the big-hitters at Credit Suisse inLondon.

Leading the team for Credit Suissein London was one of its top bankersChris Williams, the firm’s vice presi-dent of investment banking for the

EMEA region. Williams has certainlybeen busy lately, having been one of

just four senior Credit Suisse emis-saries sent to advise Prudential on itsaborted bid for AIA. He originally

joined the bank last year from rivalCitigroup, where he co-headed thefinancial institutions group.

He was joined by colleagues RobertMayhew and Edward Griffin, bothdirectors in investment banking.

Over at IBI, which employs just 25people in comparison to Credit

Suisse’s 48,000-odd global staff, jointmanaging director Tom Godfrey ledthe advisory team. Godfrey has beenadvising Bank of Ireland for the pasttwo years, including on its €3.5bnrecapitalisation.

CHRIS WILLIAMS

CREDIT SUISSE

CITY VIEWS: SHOULD PRUDENTIAL MANAGEMENT BE FORCED TO RESIGN?Interviews by Emma Sadowski

“The management must be heldresponsible for the AIA situation. If Prudential’s shares were in demandthen they should nothave had a problem

with the rightsissue but for it toreach this stagenow, senior fig-ures are partly toblame. It may bea better idea tohave a wholenew man-agementin place.”

ARIF MALIK |BARCLAYS

“The Prudential management shouldtake some level of responsibility forthe failure of the deal,but as to their resignation andallowing a new

team to comein and clear upthe mess,I am notentirely sure of that.”

JUSTIN CUNNINGHAM |GILES INSURANCE BROKER

“Prudential management should nothave to resign. Certainly they made abad decision, but that’s about it.Everybody does atsome point. Are

we asking peoplein the public serv-ice to resignwhen they havemade mistakes?No, we are not.”

OTIBA SHEIKH |UST GLOBAL

BYDAVID CROW

POLITICS▲

8/9/2019 CityAM 10/06/2010


SANTANDER could look to expandfurther in the US after buying back Bank of America’s quartershare in its Mexican division, ananalyst said yesterday.

The Spanish juggernaut paid$2.5bn (£1.7bn) in cash for the 24.9per cent stake it sold to its NorthCaroline-headquartered counter-part for $1.6bn in 2003. The confi-dent move brings Santander’sownership close to 100 per centand is expected to boost the com-pany’s earnings per share by 1.3per cent from the first year.

The transaction, due to be com-pleted in the third quarter, willpump up Mexico’s contribution toSantander’s overall earnings fromfive per cent to seven per cent.

Chairman Emilio Botin said:“The acquisition reinforcesSantander’s commitment toMexico, a country with a very posi-tive outlook for growth, and fur-thers the geographicdiversification of our group.”

But Jean Sassus, a Paris-basedanalyst at Raymond James, saidthe end of Santander’s relation-ship with Bank of America wouldclear the way for the Europeanplayer to further extend its reachinto North America.

He said: “If you split from Bank

of America, it makes your intru-sion or your entry into some partsof the US market easier because you’re not competing against yourown shareholder any more.”

Sassus said Santander couldeither build on its Sovereign sub-sidiary, which provides retail bank-ing on the east coast of the US, orforge a new brand to tap into theHispanic market in California andthe south west.

Santander offloaded the quartershare in its Mexican arm seven years ago due to bolster its capital base in the face of steeply fallingcurrencies in Brazil and Argentina. The sale was part of $7bn of assetdivestments in Latin America andEurope between 2002 and 2003.

Shares in Santander had risen3.9 per cent to €7.6 by late after-noon yesterday.

Santander reclaimsMexican operationBYOLIVER SHAH

BANKING▲


Edward King (inset) has swapped Morgan Stanley’s Asia unit for Barclays

BRITAIN’S largest spread-betting com-pany, IG Group, said it will report anunderlying profit for 2010 up by aquarter, helped by increased volatility in forex and equity markets.

The company, which takes spread bets on financial markets – allowingcustomers to benefit from falling as well as rising prices – said it had ben-efited from unstable markets in thelast few weeks of the year, boostingclient activity and the rate of new accounts opening.

IG said it expects to report anunderlying pre-tax profit of £157m

for the year ending 31 May, up from£125.9m last year, and ahead of ana-lyst expectations.

Group revenue is expected to be 16per cent higher at £298m, helped by a

65 per cent hike in revenues at its Australian business and UK revenues– its largest market – seen rising by eight per cent to £165m.

“The final quarter, despite starting with low levels of volatility, showedstrong revenue growth, up 24 percent on the corresponding period of the previous year,” the group said in atrading statement yesterday.

IG Group buoyedby volatile forex

and equity marketsBYHARRY BANKS

FINANCIAL SERVICES▲

A winner emerges from the crisisRECESSION? What recession?Santander might be the biggestlender in Spain, which has suf-fered one of the steepest housingdownturns in the world – but it isshowing no signs of slowing itsfrenetic acquisition spree. Already in pole position to snap up theRBS branches that are on the block, it has now bought Bank of America out of its Mexican busi-ness for $2.5bn.

It’s a shrewd move, allowingthe Spanish bank to expand infast-growing Mexico with theminimum of fuss. The central American nation is a hot property

at the moment; it is the most-tar-

geted emerging market economy so far this year, accounting for 65per cent of deal activity, withBrazil and Peru a distant secondand third on 26 per cent and nineper cent respectively. And this is by far the biggest of the lot so farthis year – and the third largest inthe last twelve months.

Santander’s managementexpects a negative impact of around 31 basis points on its corecapital ratio, which it can easily withstand. Its Tier 1 ratio is 8.8per cent and its operations are well-diversified (Spain accountsfor just 25 per cent of operating

profits).

Outside of Asia, Mexico is theplace to be; significant growthand pension and investment fundexpansion is just around the cor-ner, while profit margins willonly improve now the country hasexited recession.

There are few banks that haveemerged from the financial crisisunscathed, and even fewer thathave enhanced their reputation.Everyone likes to back a winner,making these shares a strong buy.

[email protected]

BOTTOMLINEAnalysis by David Crow

Santander EmilioBotin said buyingback its Mexican unitwould boost earnings1.3 per cent per share

A TOP Morgan Stanley banker hasdefected from the firm’s Asia-PacificM&A unit to take up a senior job atrival Barclays.

Edward King is expected to joinBarclays’ Asia-Pacific arm this sum-mer after stunning bosses at MorganStanley with his resignation.

Samuel Kim and Peter Ding, bothsenior bankers within the same divi-sion, will take on new roles as the co-heads of Asia Pacific M&A, a company spokesman told City A.M.

King is a veteran banker with theUS bank and has been involved insome of its most high-profile M&A work in the region.

He oversaw PetroChina’s £3.44bntakeover of part of Australian energy firm Arrow and AIA’s £2.15bn sale of its Taiwanese insurance arm.

King’s departure is the secondMorgan Stanley defection to Barclays.Last year its head of Asia Pacific invest-ment banking Matthew Ginsburg took up the same role at Barclays.

Morgan Stanleyman defects toBarclays Asia

BY STEVE DINNEEN

BANKING▲

ANALYSIS l IG Group

210

360

370

380

390

400

410

420

430

440

17 May 7 Jun26 Apr6 Apr15 Mar

p 431.809 Jun

8/9/2019 CityAM 10/06/2010


8/9/2019 CityAM 10/06/2010


HSBC STAFFMOVE INTO

RITZY NEWCHINA DIGSMORE Far Eastern joy for HSBC chief Michael Geoghegan, who relocated toHong Kong earlier this year as part of adrive by the bank to up its focus on Asia.Geoghegan yesterday cut the ribbon onthe bank’s swanky new China HQ, locatedin a shiny tower at the heart of theShanghai finance complex.

The new digs are as all-singing and all-dancing as you’d expect, with glass, steeland pre-approval for a gold certificate inenergy and environmental design. They’ve also got a pair of the bank’s lionsculptures sitting outside – a custom which has been taken up by HSBC head-quarters all over the world, including

Canary Wharf, after their inception in1923. (The lions, whose paws are tradition-ally rubbed for good luck by passers-by, were then nicknamed Stephen and Stittafter two of the bank’s senior managers.)

But best of all for the firm’s staff, theheadquarters occupy 22 floors of the 53-storey tower, directly below the über-swanky Ritz Carlton hotel, complete withfine dining restaurants, ballroom, spa andthe full works.

“We’re all hoping they’ll look kindly ontheir neighbours when it comes to dis-

right), the financier who caused a stir inthe City last year when he disappearedafter former clients claimed he owed themmoney. Levene later reappeared saying hehad simply attended the Priory for treat-ment for gambling addiction.

I hear he kept very low-key at his firstouting back on the social scene, watchingthe show and sipping his drink quietly.

TITS ON A STICK A touch of good fortune for Citi, which iscurrently subject of a lawsuit from the

smokin’ hot Debrahlee Lorenzana (left)over in the States. Lorenzana, you remember, claims unfair dismissal because her bosses thought she was “too gorgeous”.

Now, though, some genius hasunearthed a past documentary aboutplastic surgery featuring Lorenzana,

who’s actually had two boob jobs, lipo-suction and a mini tummy tuck.

“I love plastic surgery,” she gushes inthe film. “I wanna look like a [Playboy]Playmate... I wanna be tits on a stick!”

Surely that won’t help her case?

count rates,” whispers one HSBC insider,happily.

GOD’S WORK Joke of the day, courtesy of Mark Aedy, thehead of EMEA investment banking atMoelis. Speaking at a roundtable event yes-terday on the future of the Europeanrestructuring industry, Aedy took thechance to whip out a clever gag about thepositioning of his company’s headquar-ters, located just opposite St Paul’sCathedral, at the expense of Goldman bossLloyd Blankfein.

“I can’t go as far as to say we’re doingGod’s work,” he quipped, “but we’re cer-tainly sitting at the right hand of God.”

STUD MUFFIN All the best to Rakshit Ranjan, the insur-ance analyst who last week resigned fromExecution Noble to start up at Lloyds

Banking Group – though he might wantto take a piece of advice on board.

When emailing work contacts, it’s usu-ally advisable to use a bog-standard emailaddress rather than one you set up forfun – which, in Ranjan’s case, was arather amusing “Rak.Stud@...”

IN THE LIMELIGHTSpotted on Tuesday at a Royal Ascotfashion show and preview night inKnightsbridge: Nick Levene (top

Passers-by have been rubbing the paws of the HSBC lions for good luck since the 1920s

The Zoological Society of London (ZSL) is a charity devoted

to the worldwide conservation of animals and their habitats.

Registered Charity in England & Wales: no 208728

There is an easier

way to get intothe Zoo for free...

zsl.org

Name:

email:

✁Terms and ConditionsPlease note this voucher is not valid for Zoo Nights at ZSL Whipsnade Zoo on Friday 25th June.Free Zoo ticket is only valid on entry with a full paying adult ticket. Only one free personallowed per voucher. Offer is subject to availability. You must produce a valid voucher at themain entrance to be eligible for the Free Zoo ticket and will need to be surrendered upon entry.The offer is valid for either ZSL London Zoo or ZSL Whipsnade Zoo but can only be used once.Offers are valid until 30th June 2010 unless stated otherwise. Photocopied or defaced voucherswill not be accepted. Acceptance of this voucher is strictly subject to ZSL London andWhipsnade Zoo's own terms and conditions and deemed accepted on admission. Offers maybe withdrawn or subject to change without notice. Exchange or sale of this voucher isprohibited. Voucher value 0.00001p. An adult is 16 years or over. This voucher must be usedat the time of purchase and is not valid for any pre-booked tickets. This voucher cannot be usedin conjunction with any other promotion, offer, third party payment method, individual orgroup discount. In the event of a full price and concessionary adult ticket being purchasedtogether, the higher adult price must be paid for.

*On entry with a fullpaying adult.

This voucher entitles one person

to free entry to ZSL London or

Whipsnade Zoo when accompanied

by a full paying adult. Valid for any

day in June. Offer expires 30th

June 2010.

Please complete the details below prior

to your visit in order to validate the offer.

FREEZOOENTRY

*

Please tick if you do not wish to receive further offers and news from ZSL.

The Capitalist10 CITYA.M. 10 JUNE 2010

EDITED BY

VICTORIA BATESGOT A STORY? [email protected]

“Best of allfor the firm’sstaff, the new

HQ occupiesthe floorsdirectlybelow theRitz-Carltonhotel”

8/9/2019 CityAM 10/06/2010


WR\RWDFRXN

:HśUHVRFRPPLWWHGWRTXDOLW\ZHśYHLQWURGXFHGD\HDUZDUUDQW\RQDOORXUQHZFDUV

2QHZD\,WDNHUHVSRQVLELOLW\WRJXDUDQWHHTXDOLW\LVE\SXOOLQJWKH$QGRQFRUGZKLFKUXQVWKHHQWLUHOHQJWKRIWKHSURGXFWLRQOLQH

-XVWOLNHWKHIDFWRU\PDQDJHULWJLYHVPHWKHSRZHUWRVWRSWKHOLQHDWDQ\SRLQW7KLVDOORZVPHWRLQVSHFWWKHFDUFORVHO\HQVXULQJHYHU\FDULVRIWKHKLJKHVWSRVVLEOHVWDQGDUG

\HDUPLOHZDUUDQW\ZKLFKHYHUFRPHVƪUVWDYDLODEOHRQDOOQHZSDVVHQJHUFDUVRUGHUHGIURPVW-XQH7KLVVXSHUVHGHVDQ\SUHYLRXVRƩHUV

%ULGLH7XFNHU

$VVHPEO\7R\RWD0DQXIDFWXULQJ8.

d d d d

8/9/2019 CityAM 10/06/2010


Economic News12 CITYA.M. 10 JUNE 2010

UNCERTAINTY ahead of the emer-gency Budget and ongoing stagna-tion in the Eurozone, the UK’s largesttrading partner, justifies monetary policy staying on hold this month,according to a majority of City A.M.’sShadow Monetary Policy Committee(MPC).

Coming ahead of the Bank of England decision, scheduled for mid-day today, seven out of the nine com-mittee members voted to keep

interest rates at 0.5 per cent andquantitative easing at £200bn.

But Henderson’s Simon Ward andCity A.M.’s Allister Heath both provedmore hawkish, calling for a rise ininterest rates. In Ward’s view, theBank of England needs to raise thecost of borrowing by 0.25 per cent if it is serious about meeting the infla-tion target of two per cent.

Those who voted for no changepointed to the need for loose mone-tary policy to cushion the economy

from the severe fiscal tightening. They also expect that the slack in theeconomy would bring inflation ratesdown from their current highs.

Only the Institute of Directors’Graeme Leach explicitly said he

would lean towards more QE afterthe Budget on 22 June.

The Bank of England is not expect-ed to make any change to monetary policy this month. It has not budgedon interest rates since March 2009.

But the stubbornly high rate of inflation is creating a headache forthe MPC. It is now aware that the

Retail Prices Index (RPI) shot up to 5.3per cent in April, a 19-year high,

while the CPI rose to 3.7 per cent. With a Barclays survey showing

that inflation expectations rosesharply in the second quarter, somemembers of the MPC, who havealready expressed concerns aboutinflation, may become more vocal intheir views.

We will get a breakdown of the vote in the meeting minutes, which will be released on 23 June.

Shadow MPCvotes to keeppolicy on hold

DISRUPTION from the volcanic ashcloud and weakness in the Eurozone

widened Britain’s gaping trade deficitin April, official figures from theOffice for National Statistics (ONS)indicated yesterday.

The trade deficit in goods and serv-ices widened to £3.3bn from £3.2bnin March, as a result of a fall in the

services surplus to £4bn from £4.1bnthe previous month. The goods tradedeficit remained broadly unchangedat £7.3bn.

The ONS said disruption to air trav-el caused by the volcanic ash cloud

would have had an impact on bothexports and imports to non-EU desti-nations. However, the impact on trade

with EU countries is assumed to benegligible since a relatively low pro-portion of that trade is carried by air.

However, there were some encour-aging signs. The jump in imports of

basic materials and semi-finishedmanufactures shows that the manu-facturing sector is recovering, said

Alan Clarke at BNP Paribas. There were also signs that the weak

pound is starting to be felt althoughanalysts noted that this was beingused to bolster profit margins ratherthan make foreign currency pricesmore competitive.

Finland back in recessiondespite rise in exports

FINLAND has succumbed to a double-dip recession after it suffered a fur-ther two quarters of economiccontraction in the six months toMarch, official statistics confirmed

yesterday. The Finnish economy had contract-

ed between October 2008 and July 2009 before growing in the thirdquarter of last year. However, the

Scandinavian economy shrank by 0.2per cent in the final three months of the year. Yesterday’s data, whichrevealed a 0.4 per cent contraction inthe first quarter of 2010, confirmed adreaded double-dip.

This is in spite of a recovery in theEurozone member’s trade balance,

which rose seven per cent from a year earlier in April. This resulted inthe country’s first trade surplus insix months.

Britain’s trade deficit widens but firmsare benefiting from the weak pound

BY JESSICAMEAD

UK ECONOMY▲

BY JESSICAMEAD

UK ECONOMY▲

EUROPEAN ECONOMY▲

ALLISTER HEATH | CITY A.M.“The money supply is growing at an accelerated rate and the economy is expanding at a decent, but still slug-gish, pace. With inflation too high, it is time for a symbolic hike in rates, whatever happens at the Budget.”

SIMON WARD | HENDERSON

“Raise by 0.25 per cent. Negative real rates have depressed money demand, resulting in excess liquidity that has

pushed up nominal growth and inflation. The MPC must start normalising rates if it is serious about the target.”

GEORGE BUCKLEY | DEUTSCHE BANK“Despite inflation above target it is too early to think about raising rates, particularly with the markets andeconomy in a fragile state. We expect the first tightening by the end of the year but moves will be gradual.”

MICHAEL SAUNDERS | CITIGROUP

“No change ahead of the extra fiscal tightening. Provided inflation expectations are not destabilised, the MPCare likely to keep rates on hold for the rest of this year to cushion the economy against fiscal tightening.”

VICKY REDWOOD | CAPITAL ECONOMICS“The MPC should hold fire. Some are arguing that the rise in inflation requires an interest rate rise. Butthe slack in the economy should pull inflation down sharply before long.”

TREVOR WILLIAMS | LLOYDS TSB

“No change, especially with the full austerity measures yet to be announced. Although inflation is high, it willfall back in the medium-term, especially given the downside risks to growth emanating from the Eurozone.”

HOWARD ARCHER | IHS GLOBAL INSIGHTHold on interest rates and QE. If the forthcoming Budget is very tough, monetary policy needs to remainloose to support the still fragile recovery. And the Eurozone's problems pose a threat to UK growth.

GRAEME LEACH | IOD“The MPC is likely to remain on hold with no change in interest rates or QE. The more interesting call will bein July after the emergency Budget and another month's money supply data. I lean towards more QE then.”

JAMIE DANNHAUSER | LOMBARD STREET RESEARCH“Markets expect the Bank not to move this year. Even allowing for the downside risks due to problems in theEurozone, above-target inflation and robust near-term growth should force the MPC’s hand before 2011”

CITY A.M. | SHADOW MPC

8/9/2019 CityAM 10/06/2010



TWO of Britain’s property trusts haveannounced a proposal to merge creat-ing the sixth largest trust of its kindin the UK in a union valued at £1.6bn.

Board members of F&CCommercial Property Trust (FCPT)and UK Commercial Property Trust(UKCPT) have agreed on merger termsthat are expected to entice new investors.

The tie-up will be done through ascheme of reconstruction, which willsee FCPT absorbed by UKCPT.

FCPT shareholders have the optionto receive new UKCPT shares or toelect to receive 91p in cash per share.

Friends Provident and PhoenixGroup, which collectively own a 50.3per cent stake in FCPT have already

backed the sale, which cannot gothrough until it receives independentshareholder support.

But FCPT manager, F&C REIT, saidit was “disappointed” by the moveupon receiving a six-month notice

that will terminate its contract withFCPT.

“We are disappointed to have beenserved with notice given the contin-ued strong performance of the portfo-lio under F&C REIT's management,”said a statement from the group.

Analysts said the combined portfo-lio will give 60.5 per cent weighting toLondon and the South East, while 51per cent will be focused on the retailproperty market, while 36 per cent

will focus on offices and 14 per cent will be industrial

FCPT’s John Stephen will assumethe role of chairman of the new seven-member board, while UKCPT’sChris Hill will become deputy chair-man.

The new structure will see threeFCPT board members transfer over tothe newly merged group and willresult in the resignation of KeithDorrian from UKCPT’s board.

Shareholders are expected to voteon the merger proposal in August,

with both companies in need of 50per cent approval.

FCPT agrees

to a mergerwith UKCPT

Nomura hires RBS strategist

NOMURA, Japan’s largest brokerage,has made its latest high-profile hire

by poaching Benito Berber from state-owned Royal Bank of Scotland as anemerging markets forex strategist.

Berber is on gardening leave and will start in the coming months, it isunderstood. He follows in the foot-steps of ex-RBS colleagues Steve

Ashley and Chris Fleming, who joined Nomura in May. The Japanesecompany also hired Michael Hill and

James DeNaut from Deutsche Bank to jointly head up its natural resourcesteam earlier this month.

Nomura is hungry for staff as itcontinues its evolution from a Far

Eastern player to a global franchise. The business is understood to be look-ing for 60 more investment bankersin the US by the end of the year, as

well as 200 equities analysts aroundthe world.

A source close to Nomura said the brokerage was seeing remarkably low levels of employee churn since buyingLehman Brothers’ European opera-

tion 18 months ago. For example,turnover levels in its fixed incomedivision are around four per cent,

which may necessitate redundanciesin the medium term.

Referring to a policy operated by rivals such as Goldman Sachs, thesource said: “It’s a case of ‘up or out’.”

In contrast, 83 per cent-govern-ment owned RBS haemorrhagedmore than 1,000 traders from its glob-al banking and markets unit last yearas talented workers rejected the pay limits and stigma attached to the tax-payer bailout.

BY EMMA SADOWSKI

PROPERTY▲

BYOLIVER SHAH

BANKING▲

STANDARD & Poor’s suggested yester-day his rating agency would not lose business if the US creates a board tomatch rating agencies with debtissuers.

President Deven Sharma said: “We will have to go to investors and con- vince them that, ‘Look, you still wanta rating from us.’ We’ll have to work harder to get those mandates from

the investors and from the issuersdirectly.”

US lawmakers are crafting finallegislation to revamp financial regu-lation and will soon decide whether acredit rating agency board needs to

be created so a third party can choose which rating agency would rate anissuer’s debt. The Senate proposal isdesigned to increase competition inthe industry dominated by Standardand Poor’s, Moody’s and Fitch.

S&P will fight for trade if US adopts new regime

FINANCIAL MARKETS▲

THE updated FTSE 100 list wasannounced last night, with Africanfirm Barrick Gold and Indian oil andgas giant Essar Energy both musclinginto the big time.

The London Stock Exchange andembattled holiday group ThomasCook both took the plunge into theFTSE 250.

The additions to the list makes theFTSE 100 even more of a multination-al affair after mining firms such asKazakhmys, Vedanta Resources andFresnillo all leading the foreigncharge in the late 1990s.

The FTSE also updated its 250 list, with media giant Trinity Mirror,music retailer HMV and BrewinDolphin all high profile losers. Alsodropping out of sight were JP Morgan

Japanese Investment Trust, F&C AssetManagement, Dunedin IncomeGrowth Inv Trust, Ecofin Water andPower Opportunities and MelroseResources.

Newly floated SuperGroup joinedthe prestigious list, as well as JDSports Fashion, Promethean World,Centamin Egypt, BH Macro, Fidelity China Special Solutions and CPPGroup.

Barrick Gold joins the

FTSE 100BY STEVE DINNEEN

UK ECONOMY▲

RUSSIA BECOMES LARGEST OIL PRODUCER

RUSSIA overtook Saudi Arabia to become the world’s leading oil producer in 2009, while global oil consumption fell the most since 1982, BP has said. According to the oil giant'slatest Statistical Review of World Energy, Russia increased oil production by 1.5 per cent in 2009, claiming a 12.9 per cent market share. Picture: REUTERS

8/9/2019 CityAM 10/06/2010


ONLINE fashion retailer Asos plansto invest £40m in its capacity afterreporting a 44 per cent annualprofit rise yesterday.

The company is aiming to grow into a £1bn business within thenext five years.

It has signed a lease on a 1.2m sqft warehouse in Barnsley as part of the strategy.

Asos targets internet-savvy 18-34 year olds looking to copy thedesigner looks of celebrities likeKate Moss, Sienna Miller and AlexaChung but at a fraction of theprice.

Asos has defied the recession, benefiting from a young core cus-

tomer base and the migration of spending from the high street tothe internet.

The company has also undertak-en an expansion into overseas mar-kets with the US, France andGermany among the countries tar-geted.

Chief executive Nick Robertssaid: “A lot of our customers areless hit by the downturn becausethey are so young.

“They are really interested in what they will be wearing onFriday and Saturday nights whichis where we come in.

“The business is growing and wehope to hit the £1bn mark as weexpand our capacity.”

The company said recent tradehas been stoked by robust demand

for maxi-dresses and skirts, shorts, Wellington boots, sunglasses andclogs for the summer music festi-

val season. The f irm plans to launch a US

website in September and sites forFrance and Germany will follow later in the year.

The new warehouse, which willreplace an existing operation inHemel Hempstead, will have initialcapacity for £600m of annual salesafter an investment of £20m this

year.It will be fully operational by

mid 2011, under the company’sexpansion blueprint. Asos made apre-tax profit of £20.3m in the yearto 31 March – bang in line withanalysts’ consensus forecast, from£14.1m in 2008-09.

Asos aims for £1bnas web sales thriveBY JOHN DUNNE

RETAIL▲

3 0 T H J U N E / 1 S T J U L Y 2 0 1 0

R O YA L H O R T I C U L T U R A L H A L L S , L O N D O N

BAHRA IN QATARK UWA I T SAUDI ARAB IAOMA N UA E

Doing Business in the Gulf?

✓ The Gulf States offer great

opportunities to British business

✓ Everything you need

to know about doing business &

investing in the Gulf States

• Free Exhibition • Free Seminars

• Free Networking

Pre-Register for FREE entry at

www.gccbritainexpo.com

Supported by: Sponsored by:

JD Sports said yesterday its sales havereceived a lift in the build up to the

World Cup in South Africa.In the 18 weeks from 31 January to

5 June, like-for-like sales rose 4.1 percent.

That was up from the two per centincrease reported after the first 10

weeks of the period. The rise was fuelled by a clamber

for World Cup merchandise andother related products.

Sports store sales growth shot to 5.1per cent from three per cent, whilefashion store sales were down 1.2 percent, improving from a 3.5 per centdecline.

The company said that profit mar-gins had been “encouraging”.

Profits for this year are likely to hit£70m, according to forecasts – a huge

rise from the £5m being made five years ago.

Chairman Peter Cowgill said: “Thisis famous last words, but we’ve nothad a bad week this year.”

JD Sports salesrise thanks tothe World Cup

RETAIL▲

Consumer News14 CITYA.M. 10 JUNE 2010

Like-for-likesales rose4.1%, in the

18 weeks from31 January

to 5 June

That was upfrom the 2%

increase reportedafter the first10 weeks of the period

Sports store salesgrowth acceleratedto 5.1% from 3%,while fashion store

sales weredown 1.2%

ZARA owner Inditex yesterday posteda 14 per cent rise in sales for the threemonths to the end of April.

Europe’s biggest clothing retailersaw net profits jump 63 per cent to£248.4m

Zara, which also owns Bershka, hasopened 98 outlets in the period.

Inditex bounced back after almosttwo years of recession and said sales

worldwide had increased 13 per centfrom the start of its financial year inFebruary to 7 June.

Inditex said it would kick-off inter-net sales for Zara on 2 September in

Germany, Spain, France, Italy,Portugal and Britain.

Anne Critchlow, analyst at SociétéGénérale, said: “It looks to me asthough like-for-like sales were up five

per cent in the first quarter but wedon’t know the currency impact forsure I think the market will bepleased.”

Cash-rich Inditex has picked upmarket share in Spain, whichaccounts for a third of sales, during aneconomic downturn in which many smaller clothing stores have gone outof business.

Zara owner seesprofits surge after

global revenues riseBY JOHN DUNNE

RETAIL▲

ANALYST VIEWS: WILL ASOS’ SUCCESS CONTINUE? Interviews by John Dunne

JEAN ROCHE |PANMURE GORDON

Asos has delivered a better-than-expected set of preliminary results. Current trad-ing is very strong and the company has revealedplans to develop a large warehouse, which hasfuture capacity of over £1bn, taking it toward itsstated aim of achieving £1bn sales in five yearstime. We reiterate our buy rating and 735p pricetarget. Operating costs of £72.8m were betterthan we forecast, mainly because of lower staff costs.

”

MATTHEW MCEACHRAN |SINGER CAPITAL MARKETS

Results are slightly ahead of expecta-tion and comments show confidence in both theplatform and future growth initiatives. Given thebackdrop and continuing growth overseas, weexpect little change to forecasts. We remain mar-ginally ahead of consensus. Asos plans to launchlocal US, German and French sites later this year.There is optimism in the international market.Overall the news should be wellreceived.

”

“

KEITH BOWMAN | HARGREAVES LANSDOWN

They’re certainly strong results. Market consensus before was on the strong hold side – you will see some forecastsupgraded and the company has announced further investment already in its international sector.Many of their customers being so young are outside the full impact of the credit crisis. Young people tend to go online even

before they go to the high street, that is the direction things are moving in. The caution has overcome the valuation – asis the case with some tech based companies. But this company seems to be performing strongly.

ANALYSIS l Inditex

43

4445

46

47

48

49

50


€ 47.199 Jun

8/9/2019 CityAM 10/06/2010


Wjfx!uif!nptu!eftjsbcmf!qspqfsujft!xjui!zpvs

gjohfsujqt/!Jotubmm!pvs!gsff!bqq!opx/

jQbe!jt!b!usbefnbsl!pg!Bqqmf!Jod/

Gjoe!zpvs!esfbnqbe!po!uif!jQbe/

Uif!npsf!sfßofeqspqfsuz!tfbsdi

8/9/2019 CityAM 10/06/2010


BLINKX, the world’s largest videosearch engine, yesterday launchednew software it says will revolutionise

browsing video on the net. The services will offer users imme-

diate access to blinkx’s massivelibrary of over 35m hours of video

within their web browser. Blinkxfounder Suranga Chandratillake said:“These four add-ons will change the

way users interact with their browserand video on the Web. As the webmoves increasingly towards video,our goal is to make finding that video

as simple, seamless and integrated aprocess as possible.”

SOFTWARE giant Misys yesterday saw its stock rocket by a fifth afterannouncing it will part with its UShealthcare joint venture for a stagger-ing £1bn.

Misys sold most of its 55 per centstake in Allscripts for £900bn, in adeal that paves the way for Allscriptsto complete an long-mooted merger

with arch-rival Eclipsys. Misys willmaintain a 10 per cent interest in thenew entity.

Shareholders rejoiced after thesoftware firm said it would returnalmost £700m of the proceeds tothem through a tender offer for theirshares.

The sale was led by French M&A veteran Philippe Cerf at Credit Suisse.

The deal has been welcomed by analysts. Roger Phillips at EvolutionSecurities said the joint venture was“highly overvalued” and say the salerepresents “major shareholder

value”.George O’Connor at Panmure

Gordon echoed the sentiments, say-ing Misys “wins kudos” for selling the

stake.Since the Allscripts-Misys merger

closed in October 2008, Allscriptsshares have risen by around 50 percent. Misys, which has a market capof £1.23bn, is now aiming to increaserevenue by up to eight per cent overthe next two years. It says it will now concentrate on its banking softwaredivision.

The good news was greeted by theappointment of Stephen Wilson aschief financial officer. Wilson joinedMisys in 2009 as vice president of group finance. Before this he workedat IBM for over 25 years where he

became vice president and chief financial officer for IBM UK.

Misys shares

surge on £1bnAllscripts sale

CAMBRIDGE-BASED software firm Autonomy yesterday said it will buy CA Technologies InformationGovernance unit for an undisclosedsum.

The acquisition is not expected tohave a material impact on

Autonomy’s 2010 revenue, profit orcash flow.

Neil Araujo, chief executive of Autonomy unit iManage said: “Thecombination of Autonomy with CA

will further strengthen Autonomy’ssolutions for the legal, regulatory and

investigative markets.” The deal is setto close in the third quarter.

Autonomy inCA acquisitionBlinkx softwareto change web

BY STEVE DINNEEN

TECHNOLOGY▲

TECHNOLOGY▲

TECHNOLOGY▲

TWO former silicon Valley chief exec-utives are challenging for top politi-cal jobs in the US.

Republican Carly Fiorina, the for-mer Hewlett-Packard boss, is runningfor a seat in the US senate. She beatoff other candidates to win the rightto run against incumbent BarbaraBoxer for the California seat.

And Meg Whitman, former chief

executive of eBay cleared the firstround of votes to stay in the race toreplace the controversial ArnoldSchwarzenegger as governor of theembattled state. She will run againstDemocrat Jerry Brown, who has previ-ously held the post.

The Republican pair now face anuphill battle to persuade California’smoderate electorate that they havethe best solutions to the state’s finan-cial turmoil.

Former tech chiefsvie for government

US POLITICS▲

JPMORGAN Chase,lead by chief executive Jamie Dimon,unveiled a joint venture withChinese state- owned First Capital Securities

yesterday, which isthe latest move by global investment banks to exploit China’s booming capital markets.The venture willunderwrite initial

public offerings inShanghai andShenzhen.


ANALYSIS l Misys

210

230

250

270


p 249.009 Jun

JPMORGAN IN CHINESE JOINT VENTURE

8/9/2019 CityAM 10/06/2010


LONDONERS are facing severe traveldisruptions after rail union RMT announced two 48-hour strikes by Tube Lines maintenance staff startinglater this month.

Tube Lines workers, which covermaintenance of the Jubilee, Piccadilly and Northern lines, will walk off the job from 23 to 25 June and 14 to 16 July.

The strike is likely to affect theentire London Underground network

as Tube Lines also owns an emergency response team that oversees urgentrepairs across all lines.

“We have given Transport forLondon [TfL], and their newly-acquired subsidiary Tube Lines, plen-ty of opportunity to give usassurances that staff won’t take thehit for the failure of the doomed pri- vatisation project,” said RMT generalsecretary Bob Crow.

RMT members voted 90 per cent infavour of a strike last week on the back of concerns over job security, pay and working conditions once TfLcompletes its acquisition of TubeLines at the end of the month.

TfL said the matter had nothing todo with London Underground or itsdrivers and that disputes between Tube Lines and its workers over pay

existed before the decision to takeover the maintenance group.

A TfL spokesperson said: “Westrongly urge RMT leadership to calloff the threatened strike action andto enter proper dialogue with us afterour acquisition of Tube Lines.”

London Mayor Boris Johnson sig-naled yesterday that he and TfL havecome up with a contingency plan toreduce maintenance disruption onthe Northern Line, which currently suffers from daily closures as it under-goes its upgrade.

The Bank branch of the Northern

Line will be closed betweenKennington and Camden, and theHigh Barnet branch north of EastFinchley will close from around 9.30pm between Monday and Thursday from 5 July.

Johnson said: “This is the first signthat we are close to an escape fromthe dastardly confines of PPP.”

Two 48-hour

Tube strikes

to hit LondonBY EMMA SADOWSKI

TRANSPORT▲

Offer available 14/06/10 - 09/07/10 from the A La Carte Menu(subject to change), not available Al Fresco, subject to availabilityand bookable only online at offthewallrestaurant.co.uk

Lunch is served 12:00 -14:307-9 Copthall Avenue, London, EC2R 7NJ

#!

%%"$!

$!

BT EDGED closer to its first strikeaction in more than 20 years yester-day as the impasse between the tele-coms giant and its workers draggedon.

Members of the Communication Workers’ Union (CWU) have reject-ed two BT pay offers and have vowed to walk out if the firm does

not meet their demands. Talks between the two sides areongoing but the CWU is demand-ing a five per cent wage hike this

year after seeing pay frozen in2009 – which analysts say BT isunlikely to match.

BT yesterday tabled an improvedoffer of a two per cent rise this yearfollowed by three per cent next year but CWU bosses branded this “unac-ceptable”. There is now a stalematethat looks destined to end in thefirst walk-out of BT staff since it was privatised in 1984.

Reports emerged that BT had

offered to cancel offshore call-cen-tre contracts, largely based inIndia, to appease the union butcompany sources distanced them-

selves from this. They claimedinstead the firm would “take amore structured approach toinsourcing” by employing fewerthird-party organisations.

The CWU is still to vote on whether to strike or take actionshort of a walk-out, which couldinclude a “work to rule”, wherestaff refuse to carry out duties notlisted in their contracts or work any overtime.

Last year BT slowed its revenuedecline to just two per cent but thefirm still faces a £5.7bn pensiondeficit.

BT braces itself for staff action asimpasse with its workers continues

BY STEVE DINNEEN

TELECOMS▲

FORMER London Underground boss Tim O’Toole will takeover as chief operating officer of FirstGroup afterthe bus and rail firm appointed himto the role yesterday.

O’Toole, who will step into the rolenext week, will also become thegroup’s deputy chief executive inpreparation for the retirement of cur-

rent boss Sir Moir Lockhead.It is thought that O’Toole will have

an initial salary of £550,000 plus bonuses.

He is widely respected for his timeat the helm of London Underground, but also as president of ConsolidateRail Corporation in the US.

The news comes as UK bus, Irelandand Germany director Nicola Shaw isstepping down from FirstGroup’s board.

Former underground bossto take helm at FirstGroup

BY EMMA SADOWSKI

TRANSPORT▲

Unite warnsof yet moreBA walkouts

UNITE, the union representing strik-ing British Airways (BA) cabin crew, ispreparing to launch a fresh strike bal-lot that could affect travel in July.

The union warned yesterday thatpreparations for a new ballot were atan advanced stage and would belaunched if no agreement with BA isreached.

A new ballot is likely to take six weeks to carry out, meaning that if Unite is successful, one of BA’s busiest periods will be hit by strikeaction.

Len McCluskey, Unite assistantgeneral secretary, said: “Comments[by BA’s management] about ‘holdingout’ for as long as it takes against the

workforce should cause despairamong BA board and shareholders.”

A spokesperson from BA said theairline is available at anytime fortalks.

BA crew returned to work thismorning after completing the finalday of a 15-day strike period.

BY EMMA SADOWSKI

AVIATION▲

Tim O’Toole will join FirstGroup next month Picture: REX

Focus on Industrial Action 17CITYA.M. 10 JUNE 2010

WHAT WILL HAPPEN IF THERE IS A BT STRIKE?

Q.HOW OFTEN DO BT WORKERSGO ON STRIKE?

A.Not very often. BT workershave not voted for strike

action in more than 23 years – before the company was privatisedin 1984.

Q.WHO EXACTLY MAY BE GOINGON STRIKE?

A.Members of theCommunication Workers’

Union have voted in favour of pos-sible strike action. These are the“blue collar” BT workers, mainly

consisting of engineers and callcentre workers.

Q.HOW IS IT GOING TO AFFECTME?

A. The disruption to customers islikely to be minimal.

Although BT supports a vast network that provides phone linesnot only for its own customers butalso the likes of TalkTalk, the sys-tem is largely self sustaining. A walkout of a few days is unlikely to bring the system crashing down.

Q.SO WHAT IS THE PROBLEMFOR BT?

A.BT’s business will be hit by the

strike as they will not be ableto connect any new customers,

upgrade existingones or fix any broken lines. They risk losing customers who cannotget repair work done.

Q.DO PHONE LINES NEEDREPAIRING OFTEN?

A.Not really. BT says lines only need to be repaired every 15

years. But with a network the sizeof BT’s this is still a lot of work.Reports that emergency servicescould be at risk if their phonelines are damaged, are unlikely as

special provisions will be made toensure such services are covered.

Q A&

RMT general secretary Bob Crow andLondon Mayor Boris Johnson are locked in abitter dispute over the proposed walk-out

ANALYSIS l British Airways

180

200

220

240

260


p192.90

9 Jun

8/9/2019 CityAM 10/06/2010


THE Agricultural Bank of China(Agbank) has been given the go-ahead by Chinese regulators for what could be the world’s largest share flotation.

Agbank is planning to sell a stakeof 14 per cent in a dual listing that will see its shares join both theShanghai and Hong Kong stock exchanges.

The listing is expected to raise atleast $17.6bn (£12.2bn), but couldreach as high as $30bn, say analysts.

The current record amount raisedin a share flotation is $21.9bn.

This was set in 2006 by fellow Chinese lender Industrial &Commercial Bank of China.

Sovereign funds, including ChinaInvestment Corp, Qatar, Kuwait and Temasek, are seen as likely buyers of pre-IPO stakes in AgBank, along withDutch group Rabobank, which justsigned China’s third-largest lender.

AgBank is pushing for a valuationof 1.6 price to book, which wouldplace the size of its IPO at about$23bn to $25bn, around $5bn to $7bnless than it originally hoped.

The eventual size of the offering,however, is anyone’s guess at the

moment, as the company has yet togo on its roadshow to potentialinvestors, and yet to release the for-mal prospectus.

The so-called cornerstone investorsare expected to be signed this week,ahead of Monday’s premarketingperiod, with sources saying that such buyers could take as much as 40 percent of the Hong Kong offering –roughly one-third more than is typi-cal. That surplus can be attributed tothe size of the offering and the diffi-culty it is facing in a down market.

It is widely expected that AgBank will get the okay from Hong Kong’slisting committee today. If so, thelender will start pre-marketing on 14 June and kick off the formal market-ing roadshow on 24 June. AgBank plans to list in Shanghai on 15 July and in Hong Kong on 16 July.

Yesterday’s listing approval, whilelargely procedural, brought a degree of certainty back to AgBank’s fundraisingplans, after local media cast doubt on whether it would move ahead asplanned in the next few weeks.

A senior Agbank executive dis-missed reports that AgBank’s stateshareholders were pushing it to post-pone its fundraising plans due to therelatively weak market conditions.

A THIRD strike in four weeks hitHonda’s Chinese suppliers yesterday,fuelling concerns that unrest among workers in the world’s manufactur-ing hub is spreading.

Japan’s second largest automakersaid a strike and production stoppagehad begun yesterday at a factory inGuangdong province that supplieslocks to all four Honda factories inChina.

However, progress was made at

another factory supplying Hondaexhaust systems, with management

and striking workers reaching agree-ment and resuming production late yesterday, according to Honda unit Yutaka Giken. The latest walk-outcomes amid growing labour disputesin China’s Pearl River Delta, a fast-growing and densely populated man-ufacturing hub home to hundreds of foreign-owned factories. Hondaspokesman Yoshiyuki Kuroda said theautomaker expected no disruption sofar with suff icient inventory for now.

Honda rocked by its thirdChina strike in four weeksAUTOMOTIVE

▲

WESTERN COAL, the AIM-listed com-pany with interests in Canada andthe US, has bought Energybuild, theowner of the Aberpergwm colliery in Wales, for £54.4m.

Western Coal already owns 55 percent of its smaller AIM sibling, and will take the remainder through ascheme of arrangement which will

see Energybuild shareholders receive0.0833 shares in the merged entity forevery share held.

Energybuild’s Aberpergwm site hasa proven coal reserve of 6.8m tonnesand resources of 36.9m tonnes, withall its production going to the Corussteel mill at Port Talbot.

Western Coal chief executive KeithCalder said: “Acquiring 100 per centof Energybuild fits in with our value

accretive strategy. With a tremendouscoal resouce base on which to build, we believe applying our considerabletechnical and financial strength willhelp develop the project faster andachieve shareholder value sooner.”

A spokesperson said employees atEnergybuild could expect investmentrather than redundancies.

Western Coal shares closed 22.5phigher at 310.5p.

AIM-listed Western Coal pays £54.4mfor Energybuild to invest in Welsh siteENERGY

▲

HITACHI, Japan’s biggest electronicsmaker, said yesterday it expected to

keep train orders from the UK govern-ment worth £7.6bn despite admittingmodifications to the agreement werelikely.

A consortium led by Hitachi waschosen as a preferred bidder for thedeal last year, but its shares have suf-fered in recent weeks due to specula-tion the project to build and service1,400 InterCity trains would be can-celled or delayed under the coalitiongovernment’s austerity measures.

Gaku Suzuki, head of Hitachi’strain business, said: “This project is toreplace 30-year-old trains, and wedon’t expect the project itself to bescrapped. There will probably be

some modifications due to thechange in the government, but we believe we can still do it.”

A spokesperson clarified that whileparts of the deal may be cancelled, it was unlikely to be entirely annulled.

Hitachi has been caught up along with rival French and German bid-ders in worries that a number of potentially rewarding contracts inthe US, Latin America and Europecould be under threat as govern-

ments reassess their spending plans.Shares Hitachi fell yesterday, drop-

ping 1.4 per cent to $37.73 in New York trading.

Investors appear to have been con-

cerned at the cautious wording of Hitachi’s statements, which suggest-ed parts of the UK contract could bescrapped.

Hitachi reassures on UK trainsBY HARRY BANKS

TRANSPORT▲

Agbank gears

up for world’slargest IPOBY HARRY BANKS

BANKING▲


BEST OF THE BROKERS

ANALYSIS l Novartis

51

53

55

57

59

15 Mar 6 Apr 26 Apr 17 May

CHF

52.659 Jun

NOVARTISCitigroup gives Novartis a “buy” rating butwarns that the commercial opportunity fordrug Gilenia could be restricted by FDAsafety concerns. Citi said its forecasts forsales of $780m by 2014 do not seem con-servative and the appeal of the stock is theabove-average earnings per share growthand low valuation.

ANALYSIS l SABMiller

1800

1900

2000

2100


p

1,927.009 Jun

SABMILLERJP Morgan Cazenove has issued SABMillerwith an “overweight” rating and said thedrinks group has underperformed itsEuropean brewing peers. JP Morgan said itsees the shares continuing to mark time inthe short-term. JP Morgan views this as anopportunity to review the long-term case,which it continues to see as compelling.

ANALYSIS l Northern Foods

40

50

60

65


p

45.259 Jun

NORTHERN FOODSNorthern Foods delivered 2010 resultsmarginally higher than consensus expecta-tions, according to Royal Bank of Scotland(RBS), which said that the underlying earn-ings per share are up 8.4 per cent. With thestock now trading at a 9.8 per cent divi-dend yield, it continues to look attractive toRBS, which issued a “buy” rating.

To appear in Best of the Brokers email your research to [email protected]

Evolution GroupThe investment banking group hasappointed Philip Howell as a director of the group, effective immediately.

Howell was appointed chief execu-tive of Evolution’s investment manage-ment subsidiary, Williams de Broë, inFebruary this year. He joined fromFortis Private Banking, where he had

been regional chief executive since2005 and was also a member of themanagement board. Prior to that, hespent 24 years at Barclays.

Conduit Capital MarketsThe derivatives and securities dealerhas appointed Anke Richter as execu-tive director of investment grade creditstrategy, Julie Pertuiset as an executivedirector in the debt capital marketsteam and So-Hee Lee and John Shue toits fixed income sales team as a vicepresident and executive directorrespectively.

Richter was formerly head of capitalmarkets research and corporate creditat French bank Credit Agricole.

Pertuiset and Shue also join fromCredit Agricole, while Lee was atFieldstone Stone Capital.

FinnCapThe institutional broker and corporateadviser has established a new oil andgas team across research, corporatefinance and sales.

As part of the development, oil andgas analyst William Arnstein has joinedthe company, having previously workedat Jefferies and Dresdner Kleinwort.

Man GroupThe alternative asset manager hashired Tim Fitch as a senior relationshipmanager in its UK institutional sales

team.Fitch joins from Axa Investment

Managers, where he was director of single strategy hedge fund sales. He hasalso previously been senior Europeanmarketer at KBC AlternativeInvestment Management and market-ing director at GMP AssetManagement, a European event-drivensingle manager.

M&GThe investment manager has appointedStephanie Ramos as deputy head of corporate communications.

Ramos joins from Threadneedle,where she was head of PR for the UK,Europe, Asia and the US.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Victoria Bates

To appear in CITYMOVES please email your career updates and pictures to [email protected]

Investment Management AssociationThe trade body has appointed a number of industry heavyweights to its board of directors,including AllianceBernstein chief executiveClaude A Chene; Richard Kushel, the vice chair-man of BlackRock Investment Management;and Campbell Fleming, head of distribution atThreadneedle Asset Management.

Current chairman Douglas Ferrans (pic-tured), from Invista Real Estate, is to hold theposition for another two years.

Gaku Suzuki, head of Hitachi’s train business,says that the projectreplacing 30-year oldtrains would go ahead

8/9/2019 CityAM 10/06/2010



Get ready for a flood of debt restructurings

WITH continued volatility in

world markets expected tocontinue for at least the nexttwo years, many companies

are going to find it necessary torestructure their borrowings as debtsreach maturity. While this presents a

challenge to borrowers, it is an oppor-tunity for restructuring advisers, withmany forecasting a rush of work in themonths ahead so long as macro-eco-nomic conditions appear unlikely to

bailout companies.Many of the corporate finance dealsthat were cut during the leveraged buyout boom will shortly come tomaturity and expectations are that thecosts of refinancing will be much high-er this time around, piling pressure on businesses already struggling to meettheir repayments. According toresearch from Standard & Poor’s, therehas been a big rise in the number of requests for amendments to loancovenants in the corporate leveragedloans market during the first quarter

of 2010. This is expected to increasegoing forward, while refinancings arelikely to be done at higher cost to bor-rowers and on stricter loan to valueterms.

Restructuring expert Matthew Prestat investment bank Moelis & Company says: “Continued market volatility willchallenge companies’ ability to refi-nance as debt maturities loom. There will be further focus on high quality credits meaning the air will get pretty thin at the sub-investment grade endof the spectrum. Companies need to be ready to move quickly to takeadvantage whenever there is positivemarket sentiment to issue new equity or debt because the window of oppor-tunity may shut again very quickly, as

we have seen recently.”So how should borrowers approach

a restructuring? If companies cannotdo a deal with their lenders they could be forced to offload assets through an

initial public offering, for example,and hope they can realise decent valuefrom the original investment. Or per-haps private equity can be persuadedto come in and refinance the business.

The only alternative appears to begoing to lenders and saying they areprepared to pay back a loan but at alower rate of interest or over a longerterm. Stronger creditors will be able topull it off but weaker ones will bereliant on their existing lenders because they cannot refinance solenders will be seeking more equity in

return for extending a higher rates.If things start to go really sour, some

experts reckon that could forcelenders to swallow discounts of 30 to50 per cent of the original loan terms –

potentially meaning they have to writeoff hundreds of billions of dollars. Yet for their part, lenders are now

more confident and are less preparedto take a haircut when it comes torestructuring debt. Instead they aremore prepared to just take the keys toan asset. The people who own all thisdebt are either asleep at the wheel orhoping things will be better when thetime comes for the debt to come tomaturity. They must wake up now toavoid disaster in the months ahead.

[email protected]

PARTNERS at City law firm Denton Wilde Sapte and its US rivalSonnenschein Nath & Rosenthal voted in favour of a merger yesterday that will create a business with salesof £500m employing 1,400 lawyers worldwide.

The management at both firmsasked their partners to vote on the tie-up that was negotiated in secret and

only revealed to their staff two weeksago.

The deal needed 75 per centapproval, but was passed unanimous-ly among the partners at both firms. The enlarged company will becomeSNR Denton on 30 September.

Current Denton chief executiveHoward Morris and Sonnenscheinchairman Elliott Portnoy will becomethe co-chief executives of SNR Denton.

Morris said: “We are delighted that

our partners have recognised andembraced the unique opportunity presented by SNR Denton. With astrong client-service culture at bothfirms, our integration provides us with the opportunity to have lawyers working together seamlessly onshared clients.”

The enlarged firm plans to anchorits integration around a number of the key banking clients they sharesuch as HSBC, RBS Securities, JPMorgan Chase and Citibank.

Denton votes for US tie-up

AN Australian hedge fund is suingGoldman Sachs over an investment ina subprime mortgage-linked security that hastened the fund’s demise in2007.

The lawsuit, filed yesterday, accusesGoldman of misrepresenting the value of the notorious Timberwolf collateralised debt obligation.

Basis Yield Alpha Fund is suingGoldman to recoup the $56m it loston the CDO, according to a lawyer forthe fund, Eric Lewis.

The 36-page complaint, seeking$1bn in punitive damages, repeats aGoldman executive’s description of the Timberwolf CDO as “one shitty deal.”

Goldman called the suit “a mis-guided attempt by Basis ... to shift itsinvestment losses to Goldman Sachs.”

Goldman Sachs is sued by hedgefund over subprime mortgage deal

BANKING▲BY ROGER BAIRD

LEGAL▲

CITY COMMENT

BEN GRIFFITHS

8/9/2019 CityAM 10/06/2010


ENERGY company Shell is set to movehalf its London staff to temporary offices in Canary Wharf next year,after it signed a 15-year deal withSongbird Estates yesterday.

It will lease ten floors of 40 Bank Street from Songbird, a wholly-ownedsubsidiary of the Canary Wharf Group (CWG), with the opportunity to rent additional floors later.

Shell will initially pay £37.50 per sqft, valuing the first year of the deal at

over £7m. It has the option to break its tenancy after ten years.

George Iacobescu, chief executiveof CWG, said: “We are delighted to welcome a world leading occupiersuch as Shell to Canary Wharf. This isa worthy addition to the increasingly

diverse range of occupants.“The letting is also a demonstra-

tion of the continuing attraction of our high specification office spaceand flexible approach in meetingoccupier’s needs”.

Around 1,600 Shell staff will moveto Canary Wharf during the last quar-ter of 2011, while it redevelops its UK base at Shell Centre Tower near Waterloo.

Shell is currently seeking a develop-ment partner for the project.

James Smith, chairman of Shell UK,said: “Shell Centre is our home in

London. We want to redevelop it to itsfull, modern potential in keeping with the continuing development of London’s South Bank.”Shell will join American law firmSkadden, lawyers Allen & Overy and ANZ Bank at 40 Bank Street.

Shell set for2011 move toCanary Wharf

ACTIVIST investor Carl Icahn hasabandoned his proxy fight atGenzyme in return for the biotech-nology company’s acceptance of twoof his representatives to its board.

The agreement comes a week before the company’s annual meet-ing on 16 June.

Icahn had nominated himself andthree allies to Genzyme’s board aftera manufacturing crisis lead to short-ages of two of the company's life-sav-ing drugs.

Genzyme has agreed to appoint

two Icahn representatives –Dr. StevenBurakoff and Dr. Eric Ende -– and inreturn Icahn will withdraw his slateand vote his shares in favor of thecompany’s nominees.

“I think overall this is a positive,”said Michael Obuchowski, chief investment officer at First Empire Asset Management, which ownsGenzyme’s shares and oversees nearly $4bn in assets.

“It avoids a continuing confronta-tion with Icahn and provides moreoversight over the direction the com-pany takes.”

Florida lawyer sentencedto 50 years for $1bn fraud

THE WORLD CUP

AT BOISDALE OFBISHOPSGATEEnjoy the World Cup in style witha 72” screen & air-conditioning inthe Champagne & Oyster Bar

BOISDALE OF BISHOPSGATE SWEDELAND COURT,202 BISHOPSGATE,EC2M 4NR 020 7283 1763

[email protected] WWW.BOISDALE.CO.UK

SOUTH Florida Ponzi scheme master-mind Scott Rothstein was sentencedto 50 years in prison yesterday for aninvestment fraud that bilked clientsout of more than $1bn.

The sentence was more than the40 years federal prosecutors had rec-ommended for Rothstein, a dis- barred lawyer who pleaded guilty toracketeering and fraud conspiracy charges in January. He had faced upto 100 years in prison but his lawyerhad asked US District judge JamesCohn to give him no more than 30 years.

Rothstein, 47, fled to Morocco as

his fraud scheme imploded in lateOctober, apparently lured by the factthat the country has no extraditiontreaty with the US. He voluntarily returned to Florida in early November, however, and has been jailed since he surrendered to theFBI in December.

He was charged under a statuteoften used to prosecute organisedcrime chiefs. Court documents havesaid Rothstein acted with co-conspir-ators to carry out the $1.2bn scheme,creating false bank documents thatconned investors while providing“gratuities to high-ranking membersof police agencies” in order todeflect law enforcement scrutiny.

Genzyme and Icahnabandon proxy row

BYMARION DAKERS

PROPERTY▲

GERMANY’S economy ministerRainer Bruederle said yesterday hehad rejected a bid by carmakerGeneral Motors for state aid for itsEuropean unit Opel.

Bruederle said he took his decisionafter a steering committee assessingthe aid request failed to reach a unan-imous position, adding that he wasconvinced GM had enough money tocomplete an overhaul of Opel.

Opel, which owns the UK Vauxhallunit, wanted loan guarantees of morethan €1bn (£900m) from Germany.

Germany turnsdown Opel’srequest for aid

BIOTECHNOLOGY▲

AUTOMOTIVE▲

CRIME▲


Shell will pay £37.50 per sq foot for its first year Picture: Micha Theiner/City A.M.

NEWS | IN BRIEF

Germany buys Swiss tax dataGermany has purchased a new disc withSwiss banking data relating to suspect-ed tax dodgers, the Finance Ministrysaid yesterday. “What we're looking atare 20,000 sets of data, which, along-side names and addresses, also haveaccount details and internal details,”

ministry spokesman Michael Offer said.Offer said the federal government hadpurchased the data along with the stateof Lower Saxony after the informationhad first been rejected by Baden-Wuerttemberg. Offer declined to saywhat had been paid, though Germanmedia reports said the disc had cost €185,000.

Viacom declares first dividendViacom declared its first quarterly divi-dend yesterday and reinstated a stockrepurchase program, addressing ques-tions about how it would invest its extracash. Viacom, the only major US mediacompany that had not been paying adividend, set a quarterly dividend of 15cents a share. The owner of film studioParamount Pictures along with cable TVnetworks such as MTV and ComedyCentral also announced plans to buyback up to $4bn of its stock. It suspend-

ed its repurchase program in early2009. The moves return some of itscash to shareholders after several quar-ters of improving results. The dividend isthe first Viacom has paid as a stand-alone company following its split fromCBS Corp in 2006.

8/9/2019 CityAM 10/06/2010


Equities should avoid more declinesAlthough growth expectations have beenrevised lower, a double dip is not on the cards

W

HAT started as an acknowledge-ment from Greece that it had

been living way beyond itsmeans has since turned into a

universal re-appraisal of the risks of sover-eign default in Europe. After Greece, the

bond markets of Spain and Portugal werenext to be re-examined. More recently French and Dutch yield spreads have

widened against German bunds. Investorshave shown themselves less inclined tofinance the debt of countries that are notprepared to exercise budgetary prudenceand governments have been forced to situp and listen. The rhetoric of last week-end’s G20 meeting made it clear thatexpansionary fiscal policies were off theagenda and that fiscal consolidation has

become the new watchword across the western world.

Fiscal consolidation in the UK has just been launched. The main British politicalparties were careful to avoid much detaileddiscussion about the huge budget deficitahead of last month’s general election. Now safely in office, the new coalition has beenquick to let voters know the extent of deeppublic sector spending cuts are inevitableand will be “felt for decades”.

The UK is not the only industrialisedcountry that has budgetary woes. The US isin a similar position and market forecastssuggest the deficit could be 9 per cent of GDP this year. However, the US has strongergrowth. A Bloomberg survey shows the con-sensus for US 2010 growth at 3.2 per centcompared with 1.1 per cent for theEurozone in 2010 and 1.2 per cent for theUK. The US fiscal repair process will not befully implemented until next year at theearliest, whereas Europe will feel the pain

Factory output ispicking up in Germany

Picture: REUTERS

L]ZgZid\ZiVha^XZd[(#'ig^aa^dcidYVn!YdiXdb#

Forex and other leveraged products involve significant risk of loss and may not be suitable for everyone. FOREX.com UK is authorised and regulated by the Financial Services Authority.

It’s your world. Trade it.

RESEARCH DIRECTOR, FOREX.COM

JANE FOLEY

UK inflation data may be far higher than the

Bank of England target, but there is little risk of

a hike in interest rates this year. Governor King

has made it clear that he welcomes fiscal tight-

ening rather than higher interest rates. As this

takes a hold, King’s conviction that excess

capacity will bear down on prices is likely to be

strengthened. Sterling is likely to draw little

incentive from this week’s policy meeting. The

impact on the pound from comments from

Fitch, the credit rating agency, that the UK’s fis-

cal challenge is “formidable” lasted little more

than one trading session. S&P provided a similar

warning thirteen months ago and in the inter-

vening period the problem of the UK’s huge

budget deficit has been widely publicised. Not

only that, but the new UK coalition government

has been busy in the past few weeks warning

that the age of austerity is now upon us. The

budget is scheduled for 22 June. Insofar as the

government is apparently committed to deficit

reduction, the outlook for gilts and the pound

has improved, especially against the euro. Given

that sterling is still 21 per cent weaker against

the euro than its average level of 2007, the

downside bias in euro-sterling is likely to persist

and upticks could be good buying opportunities

for sterling.

IN FOCUS | UK INFLATION

much earlier. The optimism that fuelled rallies in

stocks and other risk assets through the better part of last year came to an abrupthalt in April. Since then, the markets havehad to digest the prospects of a prolongedperiod of slow growth in the industrialised

world. The recovery in growth seen in mostdeveloped countries from mid-2009 was

built around huge fiscal outlays. The timehas come for governments to repair their

balance sheets; as Bank of England gover-nor Mervyn King noted, we are only half

way through the financial crisis.So the recent downturn in markets is

based on logic. The obvious question to ask

now is whether this correction has furtherto go or whether it has gone far enough.Many of the answers will be found in eco-nomic data. If the general pace of econom-ic recovery accelerates, the market woulddraw the conclusion that the correction

was overdone.Despite reassurances this week from

Federal Reserve President Ben Bernankethat the US economic recovery remainsintact, the market is likely to be scepticalabout the ability of US growth to accelerateuntil labour data shows a significantimprovement.

The impact of last Friday’s disappointingUS payrolls number will be difficult toshake off since the market is incredibly sen-sitive to signs of a weakening economic

backdrop. German industrial productiongrowth in April, released this week, was

better than expected at 0.9 per cent. This isfurther evidence that the German recovery is gathering pace. Also, Japanese machinesorders for April were far stronger thanexpected. This data suggests that the globalrecovery is still in place.

However, the market got ahead of itself and expected stellar levels of growth this

year. As those high expectations have beendashed, the markets have had to readjust tomore moderate levels of growth, which has

weighed on markets.On a positive note it appears that that

most countries will avoid a double-diprecession and stay on the recovery track this year. While the correction may not beover, most risk assets should avoid a further

700

800

900

1,000

1,100

1,200

Jun 2009 Aug 2009 Oct 2009 Dec2009 Feb 2010 Apr 2010

Last Price

1,074.10

S&P 500

ANALYSIS l Has the correction in risk appetite got further to go?

Investment | Foreign Exchange

21

8/9/2019 CityAM 10/06/2010


IN HIS office overlooking the riverDanube, the new Hungarian PrimeMinister Viktor Orban might well beregretting throwing the fiscal state

of his country into the limelight anddrawing unwanted attention from themarkets.

In hindsight, comments from hisspokesman outlining the gravity of

Hungary’s economic situation and stat-ing that a default on its debt was possiblemight seem rather ill-considered. Whileperhaps only designed for domestic con-sumption, the comments spooked the

international markets, which are already pre-occupied with debt default in theEurozone periphery.

The Hungarian stock market hasdropped some 16 per cent since the startof April, and has shed over 1,000 points,or 5 per cent of its value, in the last week.Both concerns about external debtfinancing and the impact of austerity

measures have weighed on the markets.One of the easiest and cheapest ways

for individual investors based in the UK to get exposure to Eastern Europeanstock markets is through exchange-trad-

Worries aboutEastern Europeare overblownThe region is more resilient to the debt crisisthan you might think, says Jessica Mead

Investment | Listed Products22 CITYA.M. 10 JUNE 2010

25-26 JUNE 2010

Cavendish Conference Centre – West End

22 Duchess Mews, London, England W1G 9DT

Featured Speakers

Register today online at TradeStation.com/CityAM

Futures Symposium 2010

ea

HSA

live real-time environment.trading and analysis from industry and T

radeStation for a special two-day futures tradingJoin T

F

ers

DDONALK MCIN

live real-time environment.radeStation eindustry and T

radeStation for a special two-day futures trading

eak ed Spturea

radeStation experts in a

radeStation for a special two-day futures trading

Practical Applications of Price

Y DADAGHBMIKE

Works

ading and Analysis ThLive

SSENTER

UBERTHandJOHN CARTER

adinuturesIntroduction to F

ra e tat o n ecunalysis,A

chnicalTppliedA. ofP. V.

HSA

radeStation SecuritiesT

raining,TnstitutionalI. o. ..

URKEBHAELCMI

Market Using Seasonal Studies

Gaining an Edge in the F

ONSJOHN PER

utures n ex

ading Strat Afternoon r

DDONALcK MCIN


rading and Analysis That

UBERT

rading

radeStation Securities

rading

radeStation Securities

raining,

Market Using Seasonal Studies

uturesGaining an Edge in the F

rading Strategies for

tSeda

about this valuable

Call toll-free 00800 777 76543 to get all the details

Register today online at

adi Behavior in Rule-Based


r uceSoit

ra e tat on ev two-dayabout this valuable


Ara e tat on.com tyRegister today online at

Indicator Visualization

Strategies with Improved T

au ng ec ve r

rading


seitir

radeStation event.


MA

chnicald T

rading

Directive 2004/39/EC in all countries in the EEA (except for R

Financial thebyregulatedandauthorizedlaicnaniFeh tfo12noi tceSnidenifedsaSnoi ta tSedar To tr ek or bgnicudor tnina(

radeStationTbyissuedbeenhasmaterialThis

you, you should seek independent advice. Visit wwwusnuer auoyfI.sessollai tne topfo tne t x ecnamr ofr eper u tuffoee tnar augonsi,s tse t

astPaffiliates.itsofanyor Inc.Securities,intended,ismarket,or segmentmarketsecurities,

civdagnidar tr o tnem tsevnir o,dnik ynafonoi ta ticilosr or effooN.noi ta tSedar Tgnisu

designedworkshopseducationalareThese

and ANF,FINRA,NYSEMember

tSeda

omania).Directive 2004/39/EC in all countries in the EEA (except for R

tspasspor hasand”(“ A”AuthorityvicesSer Financialnoi ta tSedar T.0002 tcAs tek r aMdnasecivr eSeponiams’.cnIpuor Gnoi ta tSedar T,sei tir uce

radeStationTbyapprovedandInc.Securities,radeStation

.tradestation.co.uk for additional risk disclosures.you, you should seek independent advice. Visit www tnem tsevnir aluci tr apa tonr or eh tehwo tsaer k sir sesaer cninigr amnognidar T.sseccusr oecsimulatedbyindicatedor actualwhether mance,for per ast

endorsedmanner anyinor given,beshallintended,ynagnidr ager yge tar tsr onoi tadnemmocer ,eco,sevi tavir edsei tir uces,sei tir ucesllesr oyubo t

valuable thearebelievewewhatdemonstrate todesigned

SIPCand

r uceSnoit

MiFID theunder tsside timiLepor uE)yr aidisbusgni tar e

LimitedEuroperadeStation

.tradestation.co.uk for additional risk disclosures.r ofe tair por ppasi teh tgniyfingamyb

historicalsimulatedradeStationTbyendorsed

fopuor g,y tir ucess tcudor pser u tufr o

ofbenefitsvaluable

seitir

Hungary’s outlook isstill rosy

Picture: GETTY

ed funds (ETFs).ETFs that have exposure to Hungary –

there is no country-specific ETF – havealso seen their traded value fall as globalstock markets tumbled. Some ETFsexposed to the region have experienced

redemptions as investors pull out of riski-er equities. Consequently, should holdersof these ETFs be worried about events inHungary taking a toll on the value of their investments?

In fact, there are three good reasonsnot to be worried. First, Eastern EuropeETFs tend to have relatively little expo-sure to the Hungarian stock market.Lyxor’s Eastern Europe ETF only has 13.63per cent weighting towards Hungary

compared to 57.36 per cent for Polandand 29.01 per cent exposure to the CzechRepublic. BlackRock’s iShares MSCIEastern Europe 10/40 ETF has only 6.98per cent exposure to Hungarian equities

AS THE Eurozone lurches from crisisto crisis, the price of gold hit an all-time high this week at $1,250 anounce. With many analysts predict-

ing a further surge to $1,300 or $1,400,investors are flooding into the gold mar-ket and physical gold-backed ETFs. In therush, many have overlooked what could be an even better way to profit from mar-ket anxiety: gold miners ETFs.

Not all gold miner shares have done as

well as gold during the recent surge, large-ly because of a general nervousness aboutequities. For example, Van Eck Global, aUS-based ETF provider, has a gold minersETF, which is up 10 per cent year-to-date,during which gold has risen 14 per cent.But there are solid reasons to think goldmining equities will outperform gold.

For one thing, many miners have seentheir costs drop as the markets flee com-modity currencies. Operators in South Africa, Australia and Canada have benefit-ed in the last year as their currencies weakened against the greenback, in whichgold is priced. And as long as the recovery remains uncertain, the dollar will contin-ue to strengthen alongside gold.

Further, miners have been preparing foran anticipated jump in gold prices by increasing their sensitivity to the market. Traditionally, gold miners have hedgedagainst gold to protect themselves fromthe commodity’s high volatility, but in the

past year major producers have been elim-inating hedges, with Barrick Gold plan-

ning to get rid of $1.9bn worth of goldhedges altogether by September 2010.

Added to this is the low marginal cost of increasing production – once a mine is built, it costs little to speed up extraction –and gold miners look set to win big fromthe fear gripping global markets.

In turn, ETFs that track gold miningindices have swelled over the past year.ETF Securities’ gold mining fund, whichtracks the Daxglobal gold mining index,

has risen 17.3 per cent over the past year(and 9.4 per cent in the last quarter alone) while PowerShares’ Global Gold andPrecious Metals Portfolio has jumped 33per cent.

Meanwhile, with gold miners’ marginsexpanding, Van Eck Global has expandedits gold mining offering and last year start-ed another fund –the Junior Gold MinersETF. The purpose of the junior version is totake advantage of smaller mining compa-nies engaged more in exploration. VanEck’s Edward Lopez says: “Gold produc-tion has been in a bit of a decline since2000-2001 and it’s been hard for gold pro-ducers to replenish their stocks as therates of discoveries has gone down.” As aresult, “the explorers and recent develop-ers are looking for new gold mines toestablish extra production and because of that they are more risky, but they offer anew dynamic in terms of risk and return”.

Gold mining then, can be far from the

risk-averse outlook of typical physical gold buyers. Much of the recent surge has been

Benefit fromthe gold rush

through minersDemand for the physical metal should boostproduction this year, writes Juliet Samuel

Gold production hasbeen in decline foryears

Picture: REUTERS

8/9/2019 CityAM 10/06/2010


8/9/2019 CityAM 10/06/2010


Make football work for you, says Jeremy Hazlehurst

City Focus | Careers 25CITYA.M. 10 JUNE 2010

The Open University is incorporated by Royal Charter (RC 000391), an exempt charity in England and Wales and a charity registered in Scotland (SC 038302).

Make a world of difference to your career

MBAs and Masters-level programmes

Master of Business Administration

MBA Technology Management

MSc Management and Business Research Methods

We also have a range of online professionaldevelopment courses available

www.openuniversity.co.uk/mbas0845 366 6035

Inspired? Get a prospectus…

Quote: BALKAB when you call us or go online

INSPIRING LEARNING

An MBA from The Open University BusinessSchool could make a big difference to yourcareer and to your life. Our triple accreditedMBA programme encourages you to challengelimits, cross boundaries and change thinking.

What impressed me were the practicalapplications of the tools which I still use

today. It changed my whole career direction. Icame from operations into senior managementand the front end of the business.

Des Bourne, Director, Kiely Bros

We deliver specialist skills you can applystraight away in your job, and because wehave students in over 70 countries, learningwith us offers a unique international focus– helping you take your career forward inrewarding new directions.

Alex Pratt, author of Austerity Business

IT is understandable if the management devil on yourshoulder wants to file everything World Cup in the “toomuch hassle” drawer. Surely, the last distraction weneed in austere economic times is to reduce our outputeven more, just because of a football game? What next,close down during Wimbledon? And it sets such analarming precedent for the looming prospect of 2012Olympic duvet days.Then there's the matter of the non-English members of staff. Scots have a duty to support England’s opponentsno matter what, but what about other competitors likeFrance – do they get to watch their own games? Andhow about countries which didn't qualify – can they bedenied the chance to watch their own team? The wholething is fraught with employment law traps, and that’s

WORKING out how to deal with the

World Cup is tricky. A recent poll by YouGov found that 23 per cent of workers said they would take the day

off to watch England play in the World Cup,

while almost half said that being allowed to

watch games in the office would boost morale.But is that a good idea? What about the loss of focus – not to mention time? We asked ourpanel of experts for their words of wisdom.

before we even entertain the notion of a few beers inthe office. In a clash of timings – what if more of yourstaff want to watch the German match than England,and get their towels on the remote control first? Whatis someone throws a sickie instead of coming in towatch the game? Your usual “letting the team down,loss of productivity” argument for disciplinary actionwill sound hollow if it amounts to having missed a foot-ball game.On the other hand, the leader in you will know that youcan always find plenty of reasons not to do the right

thing, and that the right thing is to grab with bothhands rare moments like these to celebrate and com-miserate together. Getting more from less needs morecourage, not less. More team bonding, not less. Morelaughter, not less. In the age of austerity business,above all your team needs strong leadership and is fear-ful of being over-managed in a culture of fear.If your instinct is to screen and scream for England,then you’re likely a leader and your team will follow. If you’re more worried about the “elf and safety” risks of watching the game together then you should questionwhether you’re the right person to be carrying the flag.Your choice. Who dares wins.

Jane Mann, Fox Williams

THE World Cup can be good for workplace morale, but itcan also create a headache for employers. An employeewho skips work or “throws a sickie” to watch a matchcan be disciplined and is not entitled to be paid.However, employers should not jump to conclusions sim-ply because an employee has not turned up for work on abig match day. Ensure that any absence/disciplinary pro-cedures are followed, employees dealt with fairly andthat suitable warnings are given. Dismissal for a first“offence” is unlikely to be fair.It isn’t uncommon for staff to get carried away when“Engerland” are playing. Office banter can get out of hand, as shown by a recent court case. One Ms Okeragowas asked by a colleague whether she would be support-ing England or her own country at the World Cup. When

Ms Okerago responded that she would support her owncountry, her colleague told her to go back to her “own[expletive] country”. The tribunal agreed that MsOkerago’s colleague’s comments amounted to direct racediscrimination.With some World Cup matches having inconvenient kick-off times of 12.30 and 3.00, many employers will take apragmatic approach by allowing employees to watch/lis-ten to the match at work, provided this does not inter-fere with time critical matters. Employers may requirefootball fans to catch up on work at other times to avoid

placing an unfair burden on other colleagues. Someemployers will make a virtue out of necessity by arrang-ing official screenings. Be conscious of differing alle-giances in the workplace. Don’t assume it’s the Englandmatches everyone wants to watch. An informal approachis probably best.Finally, what do you do if an employee gets involved inallegations of football hooliganism at the World Cup?Offences committed outside of work should not be treat-ed as automatic reasons for dismissal. It will only beappropriate to dismiss an employee for hooliganism if theemployee’s actions have had a negative effect on theirbusiness.

How to handle office World Cup fever

Ceri Roderick, psychologist, Pearn Kandola

TENSIONS between work and soccer are an inevitabilityfor a lot of people over the coming month, but it could beworse. With most kick off times at 4pm or 8.30pm, thedistraction will not be as great as when time zones put biggames in the middle of the night or the middle of the work-ing day. However, employers would do well to recognisethat people’s minds may be elsewhere. Perks have a dispro-portionate effect on work morale, and there is a chance

here for employers to win hearts with relatively little dis-ruption to the working day. Sweepstakes, pundit emails,shared watching of games (for 4pm kick offs) are allopportunities for an employer to embrace the madnessrather than kick against it. Soccer fanatics will watch thekey games regardless, so take the chance to turn it into abenefit in kind rather than have the workforce living with

surreptitious guilt for a month. But watch the effect onpeople who are not soccer fans, they need to be engagedas well rather than accidentally alienated; try to get every-one involved or at least make sure that any leniency interms of “soccer breaks” is available to all.Embracing the zeitgeist also gives employers the moral(e)high ground in terms of establishing ground rules – verynecessary to ensure that whole teams are not psychologi-cally absent for large periods of time. Drawing clear linesand expectations will help to ensure that conflicts of atten-tion are minimised.Finally, prepare for the psychological effects of individualgame results. Elation, tension, anxiety, depression – evenanger – are all potential outcomes of the favoured team’sperformance and it pays to recognise this in terms of howpeople are managed – think about the timing of givingpeople good or bad news. Be ready as well for the “come-down” effect if England do poorly (that would be a goodtime to introduce some other positive distraction to avoidmoping affecting work performance) and be ready toembrace the morale lift if England do well. Such positivenews has an overall enhancing effect on sentiment andfeelings of well being – look for ways to sustain it over alonger period.

A threat to productivity in the workplace?

8/9/2019 CityAM 10/06/2010


26

Markets&InvestmentCITYA.M. 10 JUNE 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk

3i . . . . . . . . . . . . . . . . . . . . . . . . 281 .60 + 6.40 314.80 216.753i Infrastructure . . . . . . . . . . . . .107.70* +1.10 114.40 85.25

A.B. Foods . . . . . . . . . . . . . . . . .986.00* +22.50 1045.00 718.50Aberdeen Asset Man. . . . .. . . . .135.00* –1.10 155.60 111.00

Admiral. . . . . . . . . . . . . . . . . . .1352.00 +28.00 1403.00 833.50Aegis . . . . . . . . . . . . . . . . . . . . . 107.00 * + 0.60 137 .30 79.75Afren . . . . . . . . . . . . . . . . . . . . . . 89.80 + 3.10 111 .00 38.50

Aggreko . . . . . . . . . . . . . . . . . .1435.00 +28.00 1435.00 476.25Alliance Trust . . . . . . . . . . . . . . .313.80 +5.70 352.70 260.25

AMEC. . . . . . . . . . . . . . . . . . . . .819.00* +11.00 891.00 603.50Amlin . . . . . . . . . . . . . . . . . . . . . 372.30 +3 .00 428.50 291 .00Anglo American . . .. . . . .. . . .2538.50 +61.00 3015.50 1540.00

Antofagasta . . . . . . . . . . . . . . . .854.00* +15.50 1100.00 546.50Aquarius Platinum .. . . . .. . . . .359.70 +5.40 490.00 172.75

ARM Holdings. . . . . . . . . . . . . . .274.00 +9.70 274.90 104.00Arriva . . . . . . . . . . . . . . . . . . . . . 766.00 +1 .00 782.50 378 .50Ashmore. . . . . . . . . . . . . . . . . . .245.60 +2.70 311.20 183.25

Ashtead . . . . . . . . . . . . . . . . . . .105.90 –0.10 128.50 52.00Astrazeneca . . . . . . . . . . . . . . .2945.50 +24.00 3136.00 2472.00

Atkins(Ws) . . . . . . . . . . . . . . . . .690.00 +5.00 730.00 513.50Autonomy Corp . . .. . . . .. . . .1827.00 +59.00 1897.00 1121.00Aveva . . . . . . . . . . . . . . . . . . . . 1130.00 +3.00 1237.00 661.00

Aviva . . . . . . . . . . . . . . . . . . . . . 323.50 +5 .80 474.00 274 .75Babcock International . . . .. . . . .573.00 +7.50 660.50 448.50

BAE Systems . . . . . . . . . . . . . . .320.30 — 389.90 294.20Balfour Beatty. . . . . . . . . . . . . . .251.40* +1.50 328.85 238.50Barclays . . . . . . . . . . . . . . . . . . .282.70 +6.15 394.25 255.00

Barratt Development . . . . .. . . . ..96.50 +1.05 193.31 91.80BBA Aviation . . . . . . . . . . . . . . .184.00 +6.40 220.00 105.00

Beazley. . . . . . . . . . . . . . . . . . . . 115 .00 + 2.30 122.00 86.00Bellway. . . . . . . . . . . . . . . . . . . .642.50* +6.50 927.50 591.50Berkeley . . . . . . . . . . . . . . . . . . .751.00 –5.00 989.50 716.50

BG . . . . . . . . . . . . . . . . . . . . . .1064.50 +14.50 1248.00 966.90BHP Billiton . . . . . . . . . . . . . . .1817.50 +49.50 2346.00 1274.50

BlackRock Mining. .. . . . .. . . . .556.50 +11.50 654.50 346.00Booker . . . . . . . . . . . . . . . . . . . . . 41 .38* + 1.38 49.50 32.75

BP . . . . . . . . . . . . . . . . . . . . . . . 391.55 * –17 .35 658.20 380 .50Brit Insurance . . . . . . . . . . . . . . .739.00 +11.00 831.60 709.00British Airways . . . . . . . . . . . . . .192.90 +2.50 255.80 117.30

British Amer. Tob . .. . . . .. . . .2148.00 –1.00 2335.50 1637.00British Empire Tst . .. . . . .. . . . .423.90* +5.70 467.90 338.50British Land . . . . . . . . . . . . . . . .446.40 +10.10 532.00 353.00Britvic . . . . . . . . . . . . . . . . . . . . . 472.40 * + 2.60 497.70 253 .25Brown(N.). . . . . . . . . . . . . . . . . .257.10 +6.30 284.30 204.25

BSkyB . . . . . . . . . . . . . . . . . . . .574.00 +10.50 637.50 423.75BT . . . . . . . . . . . . . . . . . . . . . . . 130.50 + 4.90 151 .00 91.70

Bunzl . . . . . . . . . . . . . . . . . . . . . 716.50 * + 7.50 784.50 478 .50Burberry. . . . . . . . . . . . . . . . . . .747.00 +20.50 750.00 359.00Cable & Wire Comms . . . .. . . . ..57.05 –4.10 150.00 53.00

Cable & Wire Wwide . . . . . . . . . . .83.25 +0.20 94.80 68.60Cairn Energy . . . . . . . . . . . . . . . .398.10 +8.40 441.50 306.80

Caledonia Invs . . . .. . . . .. . . .1581.00 +15.00 1759.00 1459.00Capita. . . . . . . . . . . . . . . . . . . . . 780.00 +9 .50 829.50 643 .50Capital & Counties .. . . . .. . . . .103.80 +1.80 125.40 99.60

Capital Shopping Centres . . . . . .328.90* +5.40 580.00 300.20Carillion . . . . . . . . . . . . . . . . . . .320.50* +6.30 361.90 236.75

Carnival . . . . . . . . . . . . . . . . . .2562.00* +57.00 2937.00 1431.00Catlin . . . . . . . . . . . . . . . . . . . . . 324.10 +4 .20 380.50 284 .75Centrica . . . . . . . . . . . . . . . . . . .277.90* +0.60 320.00 212.50

Charter Intl . . . . . . . . . . . . . . . . .665.00 +5.00 855.50 395.25Chemring . . . . . . . . . . . . . . . . .3321.00 +62.00 3711.00 1910.00

Chloride Group . . . . . . . . . . . . . .345.00 +0.50 345.40 129.00Close Bros . . . . . . . . . . . . . . . . .700.00 +3.00 806.50 623.00Cobham . . . . . . . . . . . . . . . . . . .230.80* +2.50 278.60 164.90

COLT Group . . . . . . . . . . . . . . . .131.10 +5.10 144.20 98.25

Company Name Closing Price Price Change 52wk High 52wk low(p) (p) (p) (p )

Compass . . . . . . . . . . . . . . . . . .559.50 +16.00 572.00 307.75Cookson. . . . . . . . . . . . . . . . . . .427.70 +8.70 616.00 220.00

Croda Intl . . . . . . . . . . . . . . . . .1024.00 +29.50 1047.00 498.50CSR . . . . . . . . . . . . . . . . . . . . . . 394 .70 + 8.00 524 .00 320 .75

Daily Mail ‘A’ . . . . . . . . . . . . . . . .463.10 +2.40 539.00 264.25Dana Petroleum . . . . .. . . . .. .1046.00 +7.00 1549.00 968.50Davis Service . . . . . . . . . . . . . . .373.20 –0.10 442.30 307.00

De La Rue . . . . . . . . . . . . . . . . . .967.00 +24.50 1021.00 808.50Debenhams . . . . . . . . . . . . . . . . .58.20 +3.15 91.95 53.75

Derwent London . . . . .. . . . .. .1302.00* +2.00 1490.00 844.00Dexion Absolute . . . . . . . . . . . . .138.00 –0.10 148.00 107.75Diageo . . . . . . . . . . . . . . . . . . .1091.00 +28.00 1176.00 829.00

Dimension Data . . . . . . . . . . . . . .98.05 +2.20 105.00 53.75Domino’s Pizza . . . . . . . . . . . . . .358.10 +8.50 371.20 192.75

Drax . . . . . . . . . . . . . . . . . . . . . . 347 .00 + 9.40 496 .50 321 .50DSG Intl . . . . . . . . . . . . . . . . . . . . 24.82 + 0.91 39 .75 19 .25Dunelm. . . . . . . . . . . . . . . . . . . .350.40 +5.60 438.40 202.00

Easyjet . . . . . . . . . . . . . . . . . . . .402.20 +4.10 499.90 260.00Edinburgh Inv Tst . . . .. . . . .. . .391.00 +3.40 412.40 297.50

Electrocomponents. . .. . . . .. . .210.00 +0.10 245.00 134.25EnQuest . . . . . . . . . . . . . . . . . . .103.00 +1.90 112.70 87.35Eurasian Nat Res . . . .. . . . .. . .982.00* +19.00 1276.00 582.00

Euromoney Inst Inv . . .. . . . . .. .562.50* –13.00 630.00 191.25Experian. . . . . . . . . . . . . . . . . . .610.50 +1.00 664.50 434.00

F&C Comm Prop . . . . . . . . . . . . . .92.95 +0.95 96.80 73.50Ferrexpo. . . . . . . . . . . . . . . . . . .246.60 +8.00 396.20 112.00FirstGroup . . . . . . . . . . . . . . . . .378.70 +4.20 448.80 322.75

Foreign & Col Inv Tst. .. . . . .. . .271.80 +2.90 297.20 210.25Fresnillo . . . . . . . . . . . . . . . . . . .982.50 +43.50 989.00 438.00

G4S . . . . . . . . . . . . . . . . . . . . . . 274 .10 + 3.40 285 .70 197 .90Genesis Emerging Mkts Fd . . . . .451.20 +14.70 484.00 370.00GKN . . . . . . . . . . . . . . . . . . . . . . 121 .40 + 3.00 155 .00 67.49

GlaxoSmithKline. . . . .. . . . .. .1162.50* +5.50 1347.00 1027.50Great Portland Estates . . . . . .. .285.60 +5.10 332.10 203.75

Greene King . . . . . . . . . . . . . . . .381.90 +5.70 504.00 359.50Halfords . . . . . . . . . . . . . . . . . . .499.80 +12.80 524.00 299.00

Halma. . . . . . . . . . . . . . . . . . . . . 256.50 + 7.00 278 .50 169 .00Hammerson . . . . . . . . . . . . . . . .353.00 +5.00 460.30 277.00Hansen Trans . . . . . . . . . . . . . . . .86.00 +0.40 163.50 78.00

Hargreaves Lansdown . . . . . .. .355.70 +0.70 387.00 197.25Hays. . . . . . . . . . . . . . . . . . . . . . . 96 .65 + 0.65 119.00 80.00Henderson . . . . . . . . . . . . . . . . .129.00 +1.00 157.80 83.75Heritage Oil . . . . . . . . . . . . . . . . .421.60 +6.60 630.00 409.80Hikma Pharma . . . . . . . . . . . . . .685.00 +5.00 730.00 412.00

Hiscox . . . . . . . . . . . . . . . . . . . .337.00 –0.30 369.30 279.50Hochschild Mining . . .. . . . .. . .308.20 +15.60 370.60 220.00

Home Retail . . . . . . . . . . . . . . . .238.00* +4.20 336.50 233.10Homeserve . . . . . . . . . . . . . . . .2095.00 +35.00 2190.00 1336.00HSBC Hldgs . . . . . . . . . . . . . . . .641.60* +8.60 766.80 487.00

Hunting . . . . . . . . . . . . . . . . . . .455.80 +12.70 659.50 377.00ICAP . . . . . . . . . . . . . . . . . . . . . . 400 .00 + 9.10 478 .30 291 .70

IG . . . . . . . . . . . . . . . . . . . . . . . . 431 .80 + 39 .60 446.10 226 .50Imagination Tech Gp . .. . . . .. . .239.00 +4.00 289.30 80.00IMI . . . . . . . . . . . . . . . . . . . . . . . 655.50 + 13 .50 742 .00 275 .25

Imperial Tobacco. . . . . . . . . . . .1910.00 +21.00 2159.00 1547.00Inchcape. . . . . . . . . . . . . . . . . . .263.00 +4.40 347.00 255.40

Informa. . . . . . . . . . . . . . . . . . . .375.40 +8.60 439.40 216.00Inmarsat . . . . . . . . . . . . . . . . . . .805.00 +24.00 819.00 491.00Intercontl Hotels . . . . .. . . . .. .1109.00 +42.00 1175.00 584.50

Intermediate Capital . .. . . . .. . .256.00 +3.60 332.00 170.25Intertek. . . . . . . . . . . . . . . . . . .1413.00* +34.00 1576.00 987.50

Intl Power . . . . . . . . . . . . . . . . . .292.30* +2.70 354.00 228.00Invensys. . . . . . . . . . . . . . . . . . .276.90 +7.50 350.30 212.25Investec . . . . . . . . . . . . . . . . . . .480.30 +12.30 565.00 309.75

ITV . . . . . . . . . . . . . . . . . . . . . . . . 52.75 + 1.00 71 .75 31.75

Company Name Closing Price Price Change 52wk High 52wk low(p) (p) (p) (p)

Jardine Lloyd Thompson. . . . . . .554.00 +1.50 604.50 393.00Johnson Matthey .. . . . . .. . . .1480.00 –13.00 1814.00 1077.00

JPMorgan Emerg Mkts . . .. . . . .503.00 +12.00 549.00 350.50Kazakhmys. . . . . . . . . . . . . . . . 1106.00 +47.00 1634.00 567.50

Kesa Electricals . . . . . . . . . . . . .102.20 +3.00 162.00 98.45.LQJÀVKHU . . . . . . . . . . . . . . . . . .218.00* +2.00 255.00 171.40Ladbrokes . . . . . . . . . . . . . . . . .135.10 +1.00 174.97 114.60

Lancashire Hldgs .. . . . . .. . . . .480.00 –2.50 540.00 416.70Land Securities. . . . . . . . . . . . . .600.50 +13.00 743.50 415.25

Legal & General . . . . . . . . . . . . . .77.65 +2.00 94.40 49.37Lloyds Banking Gp . . . . . . . . . . . .53.47 +1.71 75.58 40.42Logica . . . . . . . . . . . . . . . . . . . . 121 .30 + 1.80 149.10 70.50

London Stock Exchange . .. . . . .594.00 –4.50 949.50 589.50Lonmin. . . . . . . . . . . . . . . . . . .1562.00 +19.00 2198.00 950.00

Man . . . . . . . . . . . . . . . . . . . . . . 238 .20 + 3.10 373 .60 199 .60Marks & Spencer . . . . . . . . . . . . .335.20* +3.00 412.70 277.75Meggitt. . . . . . . . . . . . . . . . . . . .311.10 +6.30 328.70 151.75

Melrose . . . . . . . . . . . . . . . . . . .210.00 +0.80 251.50 87.75Mercantile IT. . . . . . . . . . . . . . . .897.00 +21.00 1002.00 716.50

Michael Page Intl. . . . . . . . . . . . .378.80 +2.10 461.50 218.50Micro Focus . . . . . . . . . . . . . . . .490.00 +11.40 550.00 300.90Millen & Copthorne . . . . . .. . . . .409.40 +15.70 496.30 217.25

Misys . . . . . . . . . . . . . . . . . . . . . 249.00 + 25 .50 281 .70 157 .25Mitchells & Butlers . . . . . .. . . . .307.00 +4.50 343.90 221.75

MITIE . . . . . . . . . . . . . . . . . . . . . 229.80 + 8.90 281 .70 204 .25Mondi. . . . . . . . . . . . . . . . . . . . . 388.90 + 4.90 488 .00 182 .00Monks Inv Tst . . . . . . . . . . . . . . .289.00 +5.00 321.20 222.00

Morrison Wm . . . . . . . . . . . . . . .266.70* +4.70 306.30 234.25Murray Intl Tst. . . . . . . . . . . . . . .812.50 +9.50 893.50 575.00

National Express. . . . . . . . . . . . .223.90 +5.90 256.80 135.08National Grid . . . . . . . . . . . . . . .484.20* –0.20 607.65 466.71Next . . . . . . . . . . . . . . . . . . . . .2086.00* +44.00 2360.00 1402.00

Northumbrian Water . . . . .. . . . .280.90 –0.60 296.30 219.90Old Mutual . . . . . . . . . . . . . . . . .108.30* +0.50 127.20 71.00

Partygaming. . . . . . . . . . . . . . . .255.60 –0.40 339.70 213.30Pearson . . . . . . . . . . . . . . . . . . .928.50 +26.00 1069.00 574.00

Pennon. . . . . . . . . . . . . . . . . . . .530.50 +3.50 558.00 434.40Persimmon . . . . . . . . . . . . . . . . .364.20 +4.70 534.50 340.25Petrofac . . . . . . . . . . . . . . . . . .1223.00 +49.00 1294.00 580.00

Petropavlovsk. . . . . . . . . . . . . .1244.00 +16.00 1370.00 515.00Premier Farnell . . . . . . . . . . . . . .219.60* +3.60 249.70 121.25Premier Oil . . . . . . . . . . . . . . . . 1153.00 +20.00 1431.00 984.00Provident Financial . . . . . .. . . . .826.00* +11.50 986.00 763.00Prudential. . . . . . . . . . . . . . . . . .531.50 +6.00 665.00 350.25

PZ Cussons . . . . . . . . . . . . . . . .296.50 +1.50 305.50 169.75Qinetiq . . . . . . . . . . . . . . . . . . . .119.30 +0.20 179.10 113.90

Randgold Resources . . . . .. . . .6045.00 –45.00 6285.00 3351.00Reckitt Benckiser .. . . . . .. . . .3230.00 +89.00 3667.00 2680.00Reed Elsevier . . . . . . . . . . . . . . .484.40 +8.20 548.00 403.75

Regus. . . . . . . . . . . . . . . . . . . . . . 81.35 –1.05 125 .50 58.75Rentokil Initial. . . . . . . . . . . . . . .117.00 +1.30 140.20 82.25

Resolution . . . . . . . . . . . . . . . . . . 59.20 + 0.20 99.15 58.45Rexam . . . . . . . . . . . . . . . . . . . .313.20 +4.20 330.50 222.50Rightmove . . . . . . . . . . . . . . . . .712.50* +30.50 729.00 334.00

Rio Tinto. . . . . . . . . . . . . . . . . .3147.00 +85.00 4104.00 1822.00RIT Capital Partners . . . . .. . . .1085.00 +29.00 1159.00 861.50

Rolls Royce . . . . . . . . . . . . . . . .592.50* +8.00 631.50 325.00Rotork . . . . . . . . . . . . . . . . . . .1329.00 +23.00 1482.00 779.50Royal Bank Of Scot . . . . . . . . . . . .42.08 +0.63 58.95 28.25

Royal Dutch Shell A . . . . .. . . .1770.50* –9.50 2068.50 1431.00Royal Dutch Shell B . . . . .. . . .1703.00* –5.50 1997.50 1437.00

RSA Insurance . . . . . . . . . . . . . .117.60 +0.30 142.00 113.10SABMiller . . . . . . . . . . . . . . . . .1927.00 +44.00 2090.00 1210.00Sage. . . . . . . . . . . . . . . . . . . . . . 241 .00* + 4.20 260.50 167 .20

Sainsbury(J). . . . . . . . . . . . . . . .324.60* +3.10 373.00 306.50

Company Name Closing Price Price Change 52wk High 52wk low(p) (p) (p) (p )

Schroders. . . . . . . . . . . . . . . . .1310.00 +16.00 1450.00 764.00

Schroders N/V. . . . . . . . . . . . . .1046.00 +9.00 1185.00 643.50

Scot. & Sthrn Energy. .. . . . .. .1067.00 +5.00 1206.00 357.50

Scottish Mortgage. . . .. . . . .. . .559.50* +6.50 623.50 376.00

SEGRO. . . . . . . . . . . . . . . . . . . .264.00 +2.90 403.10 250.00

Serco . . . . . . . . . . . . . . . . . . . . . 619.50 + 13 .00 656 .50 394 .30

Severn Trent . . . . . . . . . . . . . . .1229.00 +6.00 1258.00 921.00

Shaftesbury . . . . . . . . . . . . . . . .352.70 –0.80 426.50 284.00

Shire . . . . . . . . . . . . . . . . . . . . .1426.00 +21.00 1526.00 798.50

SIG . . . . . . . . . . . . . . . . . . . . . . . 108.90 –0.50 146 .60 82.25

Smith & Nephew . . . . . . . . . . . . .633.00 +8.00 700.50 435.25

Smiths . . . . . . . . . . . . . . . . . . .1041.00 +20.00 1177.00 649.00

SOCO Intl . . . . . . . . . . . . . . . . .1610.00 +43.00 1796.00 1068.00

Spectris . . . . . . . . . . . . . . . . . . .809.50* +9.50 928.00 493.50

Spirax-Sarco Eng . . . .. . . . .. .1400.00 +9.00 1591.00 749.50

Spirent Comms . . . . . . . . . . . . . .106.90 +2.40 127.80 54.50

Sports Direct Intl . . . . . . . . . . . . . .95.10 +0.95 134.00 72.50

SSL Intl. . . . . . . . . . . . . . . . . . . .831.00 +13.00 893.50 481.25

St James’s Place. . . . . . . . . . . . .229.70 +0.10 296.90 172.25

Stagecoach . . . . . . . . . . . . . . . . .180.00 +2.30 204.90 114.75

Standard Chartered. . .. . . . .. .1621.50 +41.50 1847.00 1115.00

Standard Life . . . . . . . . . . . . . . .178.10 +2.00 237.00 172.60

TalkTalk . . . . . . . . . . . . . . . . . . .124.50 +0.80 147.10 106.60

Talvivaara Mining . . . .. . . . .. . .351.60 –1.70 501.50 315.00

Tate & Lyle . . . . . . . . . . . . . . . . .471.70 +11.00 481.40 284.75

Taylor Wimpey . . . . . . . . . . . . . . .29.18 +1.08 54.90 27.40

Telecity. . . . . . . . . . . . . . . . . . . .374.90 +0.90 455.00 272.00

Templeton Emrg Mkts .. . . . .. . .535.50 +7.00 598.00 346.50

Tesco . . . . . . . . . . . . . . . . . . . . . 402.45 * + 5.05 454.90 347 .40

Thomas Cook . . . . . . . . . . . . . . .195.50 +4.90 277.20 189.70

Tomkins . . . . . . . . . . . . . . . . . . .241.10* +3.50 258.50 135.00

Travis Perkins . . . . . . . . . . . . . . .759.00 +12.50 915.00 461.00

TUI Travel . . . . . . . . . . . . . . . . . .217.70 +2.40 313.90 213.80

Tullett Prebon . . . . . . . . . . . . . . .332.60 +2.40 436.20 261.20Tullow Oil . . . . . . . . . . . . . . . . .1120.00 +16.00 1375.00 834.50

UK Commercial Prop. . . . . . . . . . .77.30 +0.45 84.90 59.50

Ultra Electronics . . . . .. . . . .. .1598.00 +9.00 1678.00 1064.00

Unilever . . . . . . . . . . . . . . . . . .1892.00* +25.00 2024.00 1419.00

United Utilities . . . . . . . . . . . . . .559.50 +7.00 575.00 429.00

Utd Business Media . .. . . . .. . .502.50 +15.50 579.50 364.75

Vedanta Resources . . .. . . . .. .2162.00 +72.00 2967.00 1262.00

Victrex . . . . . . . . . . . . . . . . . . .1120.00 +45.00 1123.00 498.50

Vodafone . . . . . . . . . . . . . . . . . .137.25* +1.85 153.80 111.40

VT . . . . . . . . . . . . . . . . . . . . . . . 748.50 +8 .00 773 .00 416 .00

Weir . . . . . . . . . . . . . . . . . . . . . . 927 .00 + 25 .00 1076.00 437 .50

Wetherspoon(J.D.) . . .. . . . .. . .417.60 +6.70 556.00 348.00

WH Smith . . . . . . . . . . . . . . . . . .433.10* –1.90 551.00 405.25

Whitbread. . . . . . . . . . . . . . . . .1374.00* +30.00 1645.00 778.50

William Hill . . . . . . . . . . . . . . . . .177.70 +2.30 219.50 160.50

Witan Inv Tst . . . . . . . . . . . . . . . .435.00 +5.00 487.00 329.50

Wolseley. . . . . . . . . . . . . . . . . .1564.00 +40.00 1742.00 986.00

Wood Group (John) . . .. . . . .. . .297.50 +4.40 411.70 231.25

WPP . . . . . . . . . . . . . . . . . . . . . . 667 .50 + 20 .00 744 .00 380 .50

Xstrata . . . . . . . . . . . . . . . . . . . .961.70 +36.80 1344.50 555.10

Yell Group . . . . . . . . . . . . . . . . . . . 26 .40 –0.20 86 .00 20 .25

LONDON TOP 250 BY MARKET CAPITALISATION

* Ex-Dividend † Suspended

www.interactivedata.com

Company Name Closing Price Price Change 52wk High 52wk low(p) (p) (p) (p)

Wall St slides afterBP fall triggers fear

US stocks fell yesterday in anoth-er late-day roller-coaster ride,dragged lower by BP and other

energy shares as the US probeof the oil spill in the Gulf of Mexicodeepened.

The late retreat stocks triggered a bid for safe-haven assets, whichpushed US government bonds intopositive territory, while the euroedged higher boosted by demand foroptions.

BP stock price plunged 15.8 percent – shedding $17bn in market cap-italisation on the day – as it facedmore US government and congres-sional scrutiny over its handling of the Gulf of Mexico oil spill, the worstin US history.

Earlier Fed chairman Bernanke, intestimony to the US House of Representatives Budget Committee,said the US economic recovery appeared to be on solid footing andthat while a double-dip recession“can never be entirely ruled out,” he

expected the economy to continuegrowing.

The Federal Reserve’s Beige Book onregional US economic conditionsshowed economic improvementacross the country from late April toMay, yet it said there were worriesover the effect of Europe's sovereigndebt crisis on the US economy.

“Folks don’t want to go home withany risk. You are seeing a [comeback]of the safety trade,” said Evan

Moskovit, head of US fixed income atSun Capital Advisers in Wellesley,Massachusetts.

The Dow Jones industrial averagedropped 40.73 points, or 0.41 percent, to 9,899.25.

The Standard & Poor’s 500 Indexfell 6.31 points, or 0.59 per cent, to1,055.69.

The Nasdaq Composite Index lost11.72 points, or 0.54 per cent, to2,158.85.

BP shares closed at $29.20, theirlowest since August 1996, wipingabout £50bn ($72bn) off its marketcapitalisation. BP shares trading inNew York fell on growing worriesabout the costs the energy giant willhave to assume because of the spill.

“You hear this unease over solvency and/or a dividend suspension at BP,and I think it's hurting the tone of themarket,” said Nick Kalivas, senior

equity index analyst at MF Global inChicago.

BRITAIN’S top share index closedhigher yesterday, lifted by gainsin miners and banks, as

investor appetite for risk was boosted by positive comments on theUS economy from Federal ReserveChairman Ben Bernanke.

The FTSE 100 closed up 57.71points, or 1.2 per cent, at 5,085.86,after a choppy session which saw theindex hit an intraday low of 4,998.06,in the wake of Tuesday’s 0.8 per centfall.

The mood brightened afterBernanke said yesterday the US eco-nomic recovery was on solid footing, but cautioned it could be years beforethe jobs lost during the deep reces-sion are restored.

Miners were in demand on firmermetals prices as sources pointed to asurge in China’s total exports in May,ahead of the data’s official release on Thursday.

Fresnillo, Kazakhmys and Xstrata were the best off, adding 4 to 4.6 per

cent.Banks found favour as bargain

hunters moved in on a sector whichhas fallen on worries over potentialexposure to the Eurozone debt crisisand the punitive levies European gov-ernments may place on lenders’ earn-ings.

Barclays, HSBC, Lloyds BankingGroup, Royal Bank of Scotland andStandard Chartered rose 1.4 to 3.3 percent.

The British blue-chip index has fall-en 12.7 per cent since mid-April, asgrowth concerns sparked by Europe’sdebt crisis dented investor confi-dence.

“The optimistic signs are that equi-ties are spectacularly cheap againstgilts, and that the 5,000 level hasproved remarkably resilient so far,”said Jim Wood-Smith, head of research at Williams de Broe.

Williams de Broe’s Wood-Smithadded: “On the pessimistic side of it,if the US indices are going to set thetrend, then the Dow and the S&Phave both been down below impor-tant support levels.”

Among individual movers,InterContinental Hotels Group, the world’s largest hotel group by number of rooms, climbed 3.9 per cent asit began a two-day event for analystsand investors in New York.

The hotelier was also boosted by aread-across from peer Marriott which

said room rates at its North Americanhotels rose for the first time in two years during May.

BP topped the list of blue-chip fall-ers, off 4.2 per cent, following a fiveper cent decline on Tuesday, on wor-ries that the company will have tosuspend its dividend payment underpressure from American politicians who say it should go to pay for legal

claims and environmental damage inthe Gulf.Peer Royal Dutch Shell slipped 0.5

per cent.Britain’s goods trade deficit with

the rest of the world was wider thanexpected in April, after disruption toair traffic as a result of the Icelandic volcanic ash cloud hit both exportsand imports, official data showed.

Johnson Matthey fell after tradingex-dividend.

London rises on commentsby Fed chairman BernankeTHELONDONREPORT

THENEW YORKREPORT

ANALYSIS l FTSE

5,000

4,800

5,200

5,400

5,600

5,800

6,000

26 Apr 26 May24 Mar

5,085.869 Jun

8/9/2019 CityAM 10/06/2010


Boys will be boys, and here are some gadgets to makethem the envy of all the others, says Juliet Samuel

Lifestyle | Father’s DayTHE SMARTESTWALLETSIN TOMORROW’SSTYLE SECTION

27

OUT OF OFFICETIMOTHY BARBER

MUSEUM OF LONDONRight here in the City and free, the Museum of London is a treasure trove of artefacts andcurios, and its Galleries of Modern London, doc-umenting the city’s development from theGreat Fire of London in 1666 onwards, are nowopen after a £20m redevelopment. Displaysinclude reconstructed versions of a Georgianpleasure garden and a debtors’ prison, an ArtDeco lift from Selfriges and a recreation of

London’s Victorian streets. 150 London Wall,EC2Y 5HN. www.museumoflondon.org.uk

THE FANTASTICKSThe original off-Broadway production of this1960 musical about a pair of younglovers ran for a record-breaking 42years, though it never received muchrecognition on these shores. That’sset to change with the show’sarrival in the West End at last.Until 4 Sept, DuchessTheatre, WC2. Tickets

£20-£49.50 fromwww.thefantasticks.co.uk

NIKE STADIUMS AT SELFRIDGESIf you’re looking for a space in the West

End to watch the World Cup, Nikehas taken over the Ultralounge atSelfridges to install 62 plasmascreens, an exhibition of iconicfootball kits and a chill-out loungecomplete with video games and

table football. Opens this Fridayin time for the opening game.

Selfridges, 400 Oxford St, W1A 1AB, www.selfridges.com

Left, the Galleries of Modern London havebeen through a £20mredevelopment.

Goodies certain to

make dads beam

SONY DTV £1,999 from Marks and Spencer

With this year seeing the release of the world’s first major 3D blockbusters, it’s high time this newentertainment delight was brought into the home. Thankfully, technophile prayers have beenanswered with this brand new 40-inch 3DTV, available from Marks and Spencers for release thesame weekend as Father’s Day. First showcased in Las Vegas in January, this family-friendly asset tothe living room is now arriving just in time for the World Cup and offers full 1080i HD resolution aswell as three dimensional viewing. It comes with two free pairs of 3D glasses, usually priced at £100,which are controlled by infra-red radio link from the TV. Bravia internet video enables access toonline content, giving you the ability to stream YouTube straight through your cutt ing-edge TV. It’ssure to make the other fathers jealous.

PETZEL TIKKA PLUS HEADLAMP £24.99 from Cyclesportsuk.co.uk

Dorky it may be, but there are few things more useful than a good headlamp. For camping trips, late-night reading while one’s partner is asleep and adventurous expeditions in search of pilot lights, fuse

boxes and outdoor rubbish bins, the Petzel Tikka Plus is bound to come in handy. It produces floodbeam lighting from four LEDs with three brightness settings and, for night-time bike rides, can be setto flash mode. Petzel is so confident of its reliability – including water resistance – that it supplies thedevice with a three-year warrantee and its triple-A battery supply (included) means you don’t have tofork out for expensive lithium batteries. The camouflage-style elastic headband is adjustable andcomes in two colours: dark grey and orange or light grey and green.

BUFFALO CHIP FRYER £79.99 from nisbets.co.uk

Help your dad expand his BBQ skill set beyond the grill with this powerful2.8 kilowatt chip fryer. With a massive five litre tank, metal basket and

stainless steel chassis, this mean frying machine will deliver delicious crispyfries with minimal effort – its adjustable thermostatic control means thatonce you’ve set the correct temperature, all you have to do is time the fry-ing sessions. In case the chef gets overzealous, it also comes with a one-year warrantee and when BBQ season is over, it can be used to deepfryalmost anything, from churros to courgettes.

AF-S DX NIKKOR 35mm/1.8 LENS £166.99from warehouseexpress.co.uk

Your father might already have his own digital camera,but he probably doesn't have a slick, wide-angle lens togo with it. With a 35mm focal length and aperturerange from 1.8 to 22, the AF-S DX Nikkor is great in lowlight conditions and its lightweight build makes itextremely portable. Its quiet motor is also useful for dis-creet wildlife or people shots. Overall, this high-quality,fixed zoom lens is perfect for an amateur photographerinterested in learning how to use aperture, shutterspeed and image sensitivity together before moving onto a more complex zoom lens.

DRAPER 40765 POWER DRILL £49.99from amazon.co.uk

It is a truth universally acknowledged that a dad hasn'tcome of age before he has his very own power drill. Thiscordless model from Draper Tools is a durable optionwith long-lasting, fast-charing and reliable batteries thatwon't fail you when you're away from a power supply.

Despite working off a battery pack instead of mainspower, the Draper 40765 offers excellent torque andspeed as well as a hammer action option. It comes withsix drill bits and a carry case as well as a spare battery.

PENTAX 8x42 DCF CS BINOCULARS £281.67 fromamazon.co.uk

Whether your father is a budding bird watcher, a peeping Tom, or just likesto keep an eye on things, you can’t go wrong with a semi-pro, wide-anglepair of binoculars. This sleek, lightweight pair of eyes from Pentax offers aclear and bright field of view, with all of its prisms and lenses subject tomultiple optical coatings for greater contrast and vivid colour. It is also

tough on impact due to its rubber coating and water resistent up to a metreunderwater (for when the weather breaks during that ambitious summerexpedition). The comfortable eyepieces make them suitable for long useand the powerful lenses offer up to eight times magnification

LIEBHERR VINOTHEKSINGLE TEMPERATUREWINE COOLER £645 fromwineware.co.uk

Much as they might want one, mostpops sadly don't have their own winecellar. This single-temperature winecooler is the next best thing. Withspace for 68 bottles held in perfecthumidity and temperature condi-tions, this cooler ensures your high-quality wines will be stored inoptimal conditons until you’re readyto crack it out. And despite its large

capacity, it will fit neatly under aconvenient counter-top – a rathermore manageable prospect thanclearing out the whole cellar.

8/9/2019 CityAM 10/06/2010


GROUP STAGESThere are always big-name casualties inthe first round, and it was no exceptionin the Beer World Cup, with Sagres of Portugal and South Africa’s Amstelbeing egded out by more distinctive,characterful rivals. They may routinelydominate the football version, butBrazil’s Brahma failed to make the cut,while the Dutch challenge died whenGrolsch Weizen was not rated amongthe top two in Group E.

Greece’s easy-drinking Mythos nar-rowly missed out, Mexican dark tippleNegra Modelo bit the dust and crisp,refreshing and frankly lovely ZlatyBazant from Slovakia could count itself extremely unfortunate to fall at the first hurdle.

Surprise hits included Monteith’s Golden Lagerfrom New Zealand, Tusker, representing IvoryCoast, and Cameron’s 6th Sense, somewhat tenu-ously flying the flag for Cameroon, while Quilmes(Argentina), London Porter (England), Le BaladinOpen (Italy), Colomba (France), Estrella Damm(Spain) and Schneider Weissee (Germany) ensuredthe heavyweights made it into the knockout stages.

QUARTER-FINALSSouth American trumped North as Stinger unan-imously beat Brooklyn, but French hopes endedwhen Colomba, which really is worth seeking out,came up against wheat beer colossus SchneiderWeisse. Monteith’s Golden Lager continued NewZealand’s improbable march towards the trophyby seeing off Cameroon’s 6th Sense, the formerbeing swigged hungrily by all judges, and thedurable Estrella won the day against the BananaBread Beer, whose novelty started to wane.

AFRANCE – ColombaMEXICO – Negra ModeloSOUTH AFRICA – AmstelURUGUAY – Stinger

BARGENTINA – QuilmesGREECE – MythosNIGERIA – GuinnessSOUTH KOREA – Hitea

CENGLAND – London PorterUSA – Brooklyn LagerALGERIA – SkolSLOVENIA – Union Pivo

DGERMANY – Schneider Weissee

GHANA – StarAUSTRALIA – Little Creatures Pale AleSERBIA – Jelen Pivo

EHOLLAND – Grolsch WeizenDENMARK – Mikkeller Jackie BrownJAPAN – AsahiCAMEROON – Cameron’s 6th Sense

FITALY – Le Baladin OpenPARAGUAY – Dogfish Head Palo Santo MarronNEW ZEALAND – Monteith’s Golden LagerSLOVAKIA – Zlaty Bazant

GBRAZIL – BrahmaIVORY COAST – TuskerPORTUGAL – SagresNORTH KOREA – Mann’s Brown Ale

HSPAIN – Estrella DammCHILE – Fire In The HoleSWITZERLAND – HurlimannHONDURAS – Wells Banana Bread Beer

BENDING THE RULES:WHY WE CHOSE THEMNot all 32 of the World Cup nations export theirbeers to the UK so, where we were unable to layour hands on the genuine article, some creativity

was required, and our friends at www.beerge-nie.co.uk offered us these alternatives.

ALGERIA: Skol is the country’s most popularbeer, apparentlyCAMEROON: Cameron’s 6th Sense is a cheapand convenient punCHILE: Fire In The Hole, a spicy beer, is madewith chillisHONDURAS: Bananas are the main export,hence Wells Banana Bread BeerIVORY COAST: Kenyan brew Tusker repre-sents Les Elephants, as the Ivorians are knownNORTH KOREA: In 2000, Kim Jong Il had anUshers brewery dismantled, shipped fromDorset to North Korea, and reassembled. Thisis one of Ushers’ finestPARAGUAY:Dogfish Head is American butmade using Paraguayan Palo Santo woodURUGUAY: The recipe for Stinger was drawn

up in 1930, when Uruguay won the Cup

IF football is the universal game, then

beer must be its companion drink. There is not a corner of the globe where the locals do not relish a kick-

about. Similarly, wherever you find civili-sation, you will inevitably find a brewery.

Yet – and I’m sorry, Thomas Jefferson –not all beers are created equal. Just assome countries are more accomplished at

shifting an inflated pig’s bladder withtheir lower extremities, so too do somenations trump others in combining hops,malt, yeast and water.

So in an attempt to sort the Brazils of beverage making from the Liechtensteinsof lager, your correspondent collected anale for each of the 32 countries at thissummer’s World Cup and, with three all-too-willing testers in tow, pitted the beersagainst each other until there was only one left that deserved to be crowned thegreatest.

LAST 16Stinger, a nettle beer representing Uruguay, was sufficientlyintriguing in a fresh, herby way to see off the still popularQuilmes in the first head-to-head clash, before the malty butfresh Brooklyn Lager earned the USA victory over Serbianstaple Jelen Pivo, a likeable offering with a bitter finish.

Nigerian-brewed rocket fuel Guinness Foreign Extramet its match in Colomba, a refreshing, golden Corsicanlager imbued with spices and herbs that taste just a lit-tle bit like a delicious version of Deep Heat, while, withutter predictability, Germany knocked out England, thefruity wheat of Schneider Weisse proving a far biggerhit than the acquired taste of nutty, liquoricey LondonPorter.

Cameron’s 6th Sense, a mellow, floral ale, bookedCameroon and won more fans than Italy’s impos-ing Le Baladin Open, which comes in a 750ml bot-tle and, at 7.5 per cent, does to the tastebuds whatZinedine Zidane did to Marco Matterazzi. Kiwifavourite Monteith’s Golden Lager, light and honeylike,knocked out the clean but reserved Asahi of Japan.Barcelona-brewed pilsner Estrella was narrow-ly preferred to the golden-tasting Ivorian

entrant Tusker, and Banana Bread Beer, forHonduras, pipped the pleasant Mann’sBrown Ale, wearing its North Korea kit.

SEMI-FINALSGermany hasn’t got its fine reputation forall things beery without knowing how tofashion a decent steiner of frothing glory,and Schneider Weisse continued to live upto its billing by putting Stinger andUruguay to the sword. Its opponent in thefinal, after much swilling and deliberation,would be rank outsider Monteith’s GoldenLager, whose enticing subtlety saw off Spain and its much-loved Estrella.

Beer is football’s closebrother. So City A.M.’sFrank Dalleres decidedthat a World Cup of brews was only fair

Lifestyle | Beers of the World Cup28 CITYA.M. 10 JUNE 2010

its all over...TheydrinkTHE GROUPS(and their beers)

FINALIn keeping with the format, it only seemed fair to hand one of the losing semi-finalists the consolation of third place, and hav-ing improved round by round Estrella took that crown for Spain, its abiding drinkability outlasting the ever-so-slightly gim-micky Stinger.

In some ways the final was an overwhelmingly Bavarian affair, with even Monteith’s being based on the malty lagers of Munich, and it was almost impossible to choose a winner between two marvellous ales. Schneider Weisse, as well as having aname every bit as superbly Germanic as Bastian Schweinsteiger, was delicious enough to atone for the hurt of repeated penaltyshoot-out defeats to our Teutonic chums, yet, after extra time, it was Golden Lager that snatched the spoils, its combination of

smooth malt and light, amber nuttiness doing what no Kiwi footballers are ever likely to do, and winning the World Cup for NewZealand. With thanks to www.beergenie.co.uk for providing an international panoply of brews

Jackie and Bobby Charlton celebratingthe 1966 victory with their mother, anda World Cup Beer Picture: GETTY

8/9/2019 CityAM 10/06/2010


T E R

R E S T R I A L

WORLD CUP KICK OFF CONCERTBBC2, 9.30PM

Football stars past and presentintroduce performances by internationaland African artists, featuring AliciaKeys, Black Eyed Peas and Shakira.

SKINSCHANNEL 4, 11.10PM

New series. Thomas feels responsiblefor an accident in a club on a night outwith friends. Guest starring Birds of aFeather actress Pauline Quirke.

FIFTH GEARFIVE, 7.30PM

Tiff Needell and Jonny Smith attempta trip in an electric car and VickiButler-Henderson drives the £100,000Maserati GranCabrio.

BBC1

SKY SPORTS 15.30pm Live Twenty20 CupCricket 9pm ATP TourUncovered 9.30pm PremierLeague World 10pm WorldCup Report 10.30pm Football’sGreatest 11.30pm Twenty20Cup Cricket 1.30am Football’sGreatest 2.30am Time of OurLives 3.30am Premier LeagueWorld 4am Football’s Greatest5am IAAF Athletix Weekly5.30am-6am Premier League

World

SKY SPORTS 22.55pm Live Test Cricket10.30pm WWE: Late Night –Raw 1.30am WWE: NXT2.30am NRL Fulltime 3am-5amChampionship Rugby League

SKY SPORTS 37pm IAAF Athletix Weekly7.30pm Premier League World8pm Live PGA Tour Golf 11pmEuropean Tour Golf 12.30amGolfing World 1.30am PGA

Tour Golf 4.30am-5amPremier League World

BRITISH EUROSPORT7pm Live Motor Racing 8pmSoccer City Live 8.30pmCycling 9pm Live Motor Racing11pm Rallying 11.30pm SoccerCity 12am Le Mans 24 Minutes12.30am-1am FIFA World CupGiants

ESPN5.30pm World Cup Season8pm Premier League Football10pm MMA Live 10.45pm Talkof the Terrace 11pm SouthAfrica Nightly 11.30pm RobbenIsland: A Greater Goal 12.00amUFC All Access 12.30am PressPass 2010 1.00am UFC AllAccess 1.30am-5am Live NBABasketball

LIVING7pm Ghost Whisperer 8pmDrop Dead Diva 9pm Grey’sAnatomy 10pm Criminal Minds

12am CSI: Crime SceneInvestigation 2am Exposed –Jude Law 3am The FreshPrince of Bel-Air 3.50amMaury 4.40am Nothing toDeclare 5.30am-6am HomeShopping

BBC THREE7pm Top Gear 8pm Britain’sReally Disgusting Food 9pmStanley Park 9.30pm Dappers10pm EastEnders 10.30pm

Lee Nelson’s Well Good Show11pm Family Guy 11.45pmJunior Apprentice 12.45amStanley Park 1.15am Dappers1.45am Who Is NelsonMandela? 2.45am Lee Nelson’sWell Good Show 3.15amBritain’s Really Disgusting Food4.15am The Wags’ Stories4.45am-5.15am Bizarre ER

E47pm Hollyoaks 7.30pm MyName Is Earl 7.55pm Friends9pm The Big Bang Theory

9.30pm How I Met YourMother 10pm TheInbetweeners 10.35pm RudeTube 11pm Glee 12.05am-6amBig Brother: Live

HISTORY7pm How the Earth Was Made8pm Ancient Discoveries 9pmWarriors: Attila the Hun 10pmEgypt 11pm How the EarthWas Made 12am Warriors:Attila the Hun 1am Clash of the

Gods 2am The Sinking of theRoyal Oak 3am Not Forgotten4am-5am Jew Train XX

DISCOVERY8pm How Do They Do It?8.30pm How It’s Made 9pmHeli-Loggers 10pm Man vsFish with Matt Watson 11pm IWas Bitten 12am DeadliestCatch 1am Bear Grylls: BornSurvivor 2am How Do They DoIt? 2.30am How It’s Made3am Extreme Engineering3.50am Man on Earth

4.40am Attack and Capture:The Story of U-Boat 5055.30am-6am How Does ThatWork?

DISCOVERY HOME &

HEALTH7pm Baby Tales 8pm Hospital9pm Emergency 10pmHospital Emergency 11pmTrauma Unit 12am Emergency1am Hospital Emergency 2amTrauma Unit 3am Hospital

4am Bringing Home Baby5am-6am Student Midwives

SKY18pm Modern Family 9pm ALeague of Their Own 10pm Lieto Me. Cal tries to track down apsychopath. 11pm NCIS: LosAngeles. The secret transfer of a terrorist is compromised.12am Oops TV 1am Road Wars2.40am 24 3.30am Tru Calling4.20am Celebrity Parents’ SOS4.45am Oops TV 5.10am-6amSell Me the Answer

BBC2 ITV1 CHANNEL4 FIVE

S A T E L L I T E &

C A B L E

TV PICK6pm BBC News6.30pm BBC London News7pm The One Show: Livetopical reports.7.30pm EastEnders; BBC News8pm Watchdog9pm Junior Apprentice10pm BBC News10.25pm Regional News

10.35pm Question Time11.35pm This Week; HolidayWeatherview12.25am Sign Zone: Panorama12.55am Sign Zone: Countryfile1.55am Sign Zone: When RomeoMet Juliet 2.55am Sign Zone: Dietor My Husband Dies 3.45am SignZone: Great British Menu 4.45am-6am BBC News

6pm Eggheads6.30pm Great British RailwayJourneys7pm The Culture Show: Therelationship between scienceand art. Last in the series.8pm Springwatch 20109pm Springwatch Unsprung2010

9.30pm CHOICE World CupKick Off Concert: Music starsperform at Soweto’s OrlandoStadium.10.30pm Newsnight; Weather11.20pm The Culture Show12.20am World Cup Kick Off Concert3.20am BBC News 4.45am-6amClose

6pm London Tonight6.30pm ITV News7pm Emmerdale: Hour-longepisode. Nicola’s court hearingis delayed.8pm Coronation Street8.30pm Coronation Street9pm Father & Son10pm ITV News at Ten

10.30pm London News10.35pm FILM Sixty Six:Premiere. Coming-of-agecomedy drama, starring GreggSulkin. 2006.12.20am The Zone; ITV NewsHeadlines2.20am British Touring CarChampionship Highlights 3.35am-5.30am ITV Nightscreen

6pm The Simpsons6.30pm Hollyoaks7pm Channel 4 News8pm Location, Location,Location: A couple who havebeen house-hunting for 10 years.9pm Come Dine with Me:Footballers Special10pm Big Brother

11.10pm CHOICE Skins: Newseries. Thomas feels responsiblefor an accident in a club.12.15am Dirty Sexy Money1.10am Big Brother: Live 3.30amDispatches: Undercover SocialWorker 4.25am Unreported World4.50am The Kitchen Pharmacy5.05am Countdown 5.50am-6.15am The Hoobs

6pm Home and Away6.25pm Live from Studio Five7.30pm CHOICE Fifth Gear:Tiff Needell and Jonny Smithattempt a trip in an electric car;Five News Update8pm Britain’s GreatestMachines with Chris Barrie;Five News at 9

9pm FILM Once Upon a Timein Mexico: Action thriller,starring Antonio Banderas andJohnny Depp. 2003.11.05pm Police Interceptors:12.05am SuperCasino4.05am Wildlife SOS 4.30amWildlife SOS 4.55am Rough Guide toWeekend Breaks 5.10amNeighbours5.35am-6am Home and Away

28 16

12 29

4 13

30 14

45

23

45

27 11

7 16

26 22

10 17

12

15

15

3

32

21

16

34

8

24

10

19

14

17

7

33

35

15

18

9

17

5

16

Fill the grid so that each block

adds up to the total in the box

above or to the left of it.

You can only use the digits 1-9

and you must not use the

same digit twice in a block.

The same digit may occur

more than once in a row or

column, but it must be in a

separate block.

COFFEE BREAKCopyright Puzzle Press Ltd, www.puzzlepress.co.uk

KAKURO

QUICK CROSSWORD

LAST ISSUE’SSOLUTIONS

KAKURO

WORDWHEELUsing only the letters in the Wordwheel, you have

ten minutes to find as many words as possible,

none of which may be plurals, foreign words or

proper nouns. Each word must be of three letters

or more, all must contain the central letter and

letters can only be used once in every word. There

is at least one nine-letter word in the wheel.

SUDOKU

WORDWHEEL

Place the numbers from 1 to 9 in each empty cell so that each

row, each column and each 3x3 block c ontains all the numbers

from 1 to 9 to solve this tricky Sudoku puzzle.

SUDOKU

QUICK CROSSWORD

ACROSS

1 Roman god with

two aces (5)4 Large bags (5)7 Adult emale bird (3)8 Ancient region o Egypt

and Sudan, on the Nile (5) 10 Ancient (3)11 Scottish island,

capital Portree (4) 12 Slang or ‘drunk’ (5) 14 Synthetic silk-

like abric (5)17 Heavens (5) 20 Purchaser (5) 22 Subjected to great

tension (4) 23 Spherical object (3) 24 Passed out playing

cards (5) 26 Boisterous practical

joke (3) 27 Printing machine (5)

28 Come into (5)

DOWN

1 Media personality, __ _

Street-Porter (5)2 Pen point (3)3 Unstable (5)4 Facial expression

o contempt (5)5 Sidekick (5)6 Chair used as a

carriage (5)9 Bring out an ofcial

document (5) 13 Type, kind (3) 15 Extremely sharp (5) 16 Metal-bearing

mineral (3)17 Large ladle (5) 18 Suuse with colour (5)19 Agitates (5) 20 Shit, move very

slightly (5) 21 Revolving arm o a

distributor (5)

25 Section o a play (3)

The nine-letter word

wasPARSONAGE

E

E

T

R

HG

N

I

L

0 8 7 ( ' 7 ( ; $ 6

8 5 , $ 2

7 + , 1 * 6 9 , 6 $

8 & 6 $ 7 ( .

$ % ( / 7 $ 6 7 <

/ 3 % $ * 5 %

$ 6 3 ( 1 % $ % (

+ + ( , 5 , 7

$ 8 7 2 & $ 1 1 2 7

/ 1 * ( (

7 2 . ( 1 6 0 ( $ 5

1 8 4 2 1 9 7

4 7 9 8 6 5 7 1

1 6 7 6 8 9

8 6 3 1 4 2

9 4 8 5 6 3 7 9

7 2 8 5 9 1 8 7

5 3 6 1 4 2 3 1

5 2 1 3 5 6

3 8 9 7 1 4

2 9 9 7 4 8 6 3

1 2 6 9 8 9 1

Lifestyle | TV& Games 29CITYA.M. 10 JUNE 2010

8/9/2019 CityAM 10/06/2010


Sport30 CITYA.M. 10 JUNE 2010

MICHAEL BALLACK’S agent has toldof the German’s “complete surprise”at being released by Chelsea.

The 33-year-old was believed to belocked in talks with the PremierLeague champions to extend his exist-

ing deal, which is worth an estimated£150,000 a week.

But Ballack’s agent, Michael Becker,claimed there had been no contact

with Chelsea and said the midfielder was willing to take a pay cut and aninitial one-year extension to stay atStamford Bridge.

“He was completely surprised,”

Becker said. “He has not spoken toChelsea for three months.”

Ballack was signed by JoseMourinho on a free transfer fromBayern Munich in 2006 and went onto make 167 appearances, scoring 26goals. In that time, he won three FA Cups and this season helped the clubclinch their first title in four years.

Germany coach Joachim Low yester-day revealed there are “concrete offersfrom different clubs in differentleagues” for Ballack, who is currently on holiday in Miami after being ruledout of the World Cup through injury.

Juliano Belletti, 33, also leavesChelsea having joined from Barcelonain 2007, making 54 appearances.

Ballack ‘surprised’ by Chelsea release

Cole, Ballack (top right), and Belletti (bottom) are victims of Chelsea’s efforts to impose a strict pay code. Pictures: REUTERS, GETTY

JOE COLE refused to be drawn on hisfuture last night after it was con-firmed he is to leave Chelsea this sum-mer.

The England playmaker will departStamford Bridge after seven years on 1

July after the Premier League champi-ons refused to agree terms to a new deal.

He joins 30-pluses Michael Ballack and Brazilian right-back JulianoBelletti through the exit door as theBlues attempt to impose a stringentpay code.

Cole’s availability is set to spark amass transfer scramble with

Tottenham, Arsenal, ManchesterUnited and Manchester City all scram-

bling for the 28-year-old’s signature.

But fronting a packed Englandpress conference yesterday, the former

West Ham trainee insists his focus liessolely on playing his part for Englandin South Africa this month.

“I am just focused on the WorldCup,” Cole said. “I’ll leave that withmy agent. I just want to get my headdown and try and train and play well.

“My future will sort itself out. It won’t distract me. It has been goingon for a while and it is a story to betold at another time.

“I want to try and do my best forEngland over the next few weeks.”

Ousted Cole keeps his focusBY JON COUCH

PREMIER LEAGUE▲

Since moving across the capital for£6.6m in 2003, Cole has become aninstant hit with the Blues faithful, winning three Premier League titlesand three FA Cups in 282 appearancesfor the club, scoring 39 goals.

But a serious knee injury halted hisprogress last season with Cole strug-gling to hold down a first-team placehaving netted just twice in 26 games.

At the same time, talks stalled overa new deal with owner Roman Abramovich apparently unhappy atCole’s reported demands to increasehis £90,000-a-week wage to earn parity with the club’s top earners, who takehome up to £150,000 a week.

ResultsCRICKET

FRIENDS PROVIDENT T20- North Division: (Derby); Derbyshire120-4 v Warwickshire 123-7 (I R Bell 66).Warwickshire (2pts) beat Derbyshire by 3 wickets. (Old Trafford); Lancashire 157-5 (T CSmith 67) v Northamptonshire 88. Lancashire (2pts) beat Northamptonshire by 69 runs.

South Division: (Tunbridge Wells); Kent 163-5 ( D I Stevens 52no) vSussex 166-6 .Sussex (2pts) beat Kent by 4 wickets. (Lord’s);Middlesex155-6 v Somerset 158-5 (K A Pollard 89no).Somerset (2pts) beat Middlesex by 5 wickets.

RACING RESULTS

BEVERLEY200 1 Nellie Ellis (S De Sousa) 15-8 Fav 2 Madam Markievicz (P Makin)2-1 3 Alhoni (G Gibbons) 14-1230 1 Ryedane (D Allan) 4-1 Fav 2 Azygous (David Simmonson) 25-1 3Tamarind Hill (Declan Cannon) 12-1 4 Timber Treasure (S De Sousa) 16-1300 1 Polish World (P Pickard) 10-1 2 Amethyst Dawn (D Allan) 7-2 Fav 3Northern Flyer (I J Brennan) 9-2330 1 Highland Love (A Culhane) 7-1 2 George Adamson (P Mcdonald)15-8 Fav 3 Mohawk Ridge (P Makin) 3-1400 1 Rule Breaker (S De Sousa) 11-10 Fav 2 Advertisement (T Eaves) 7-23 Silvery Moon (D Allan) 18-1430 1 Captain John Nixon (James P Sullivan) 9-2 2 Dubawi King (ACulhane) 8-1 3 Pleasant Way (P Mcdonald) 12-1HAMILTON635 1 Ivestar (Miss Charlotte Holmes) 40-1 2 El Dececy (Mr S Walker)Evens Fav 3 Final Salute (Mr J Newman) 8-1705 1 Soraaya (C Catlin) 15-8 Jt Fav 2 Nawaashi (T P O’shea) 5-2 3Dunmore Boy (P Hanagan) 15-8 Jt Fav735 1 Tangerine Trees (P Hanagan) 7-4 Fav 2 Indian Skipper (F Norton) 5-1 3 Leonid Glow (P Makin) 11-4805 1 Just Lille (B Mchugh) 12-1 2 Lady Eclair (P Mulrennan) 12-1 3Citizenship (S Donohoe) 28-1835 1 Royal Straight (P Hanagan) 15-8 2 Stellite (G Bartley) 16-1 3 RoyalDignitary (A Nicholls) 10-11 Fav905 1 Applaude (F Norton) 8-1 2 Saving Grace (D Fentiman) 9-1 3 Sarwin(A Elliott) 12-1HAYDOCK

220 1 Very Good Day (A Munro) 4-9 Fav 2 Cotillion (S Donohoe) 25-1 3Joseph Lister (Martin Dwyer) 25-1250 1 Sweetie Time (S Drowne) 11-1 2 Khor Sheed (Kirsty Milczarek) 9-23 Galloping Queen (A Munro) 8-1320 1 Sunraider (M Hills) 11-4 Fav 2 Little Garcon (Martin Dwyer) 8-1 3Walvis Bay (M Fenton) 7-1350 1 Dolphin Rock (T P Queally) 9-2 Jt Fav 2 Pintura (S Donohoe) 20-1 3Pentominium (L Dettori) 8-1420 1 Tanforan (S Drowne) 25-1 2 Flying Silks (R Havlin) 11-4 Fav 3 JustTimmy Marcus (R Winston) 8-1455 1 Itlaaq (R Hills) 11-4 Fav 2 Satwa Moon (L Dettori) 11-1 3 TheGalloping Shoe (S Drowne) 40-1KEMPTON620 1 Quiet Mountain (Matthew Davies) 4-1 Jt Fav 2 Harting Hill (KatiaScallan) 13-2 3 Teen Ager (Ryan Clark) 14-16.50 1 Striking Priorite (William Buick) 10-3 Jt Fav 2 Lady Morganna (KierenFox) 14-1 3 Comrade Bond (T E Durcan) 9-2720 1 Dever Dream (R Hughes) 4-9 Fav 2 Gojeri (Jack Mitchell) 16-1 3Dungannon (J Fortune) 6-1750 1 Arctic Cosmos (William Buick) 3-1 2 Sierra Alpha (T E Durcan) 16-13 Activate (Hayley Turner) 2-1 Fav820 1 Litenup (T E Durcan) 16-1 2 Champagne Fizz (Dane O’neill) 5-1 3Iguacu (Matthew Davies) 11-4 Fav850 1 Al Khimiya (Jim Crowley) 10-1 2 That’s My Style (William Buick)10-1 3 Flouncing (R Hughes) 3-1 Fav920 1 Cape Rock (Jim Crowley) 7-1 2 Clockmaker (William Buick) 11-2 3Regeneration (Hayley Turner) 5-2YARMOUTH210 1 Leiba Leiba (S Sanders) 4-11 Fav 2 Joe Junior (David Probert) 33-13 Hawk Moth (J Dean) 18-1240 1 King’s Sabre (Paul Eddery) 11-2 2 Macanta (N Mackay) 5-1 Fav 3Rascal In The Mix (Amy Ryan) 18-1310 1 Miss Kitty Grey (N Mackay) 9-4 Fav 2 Bold Diktator (Amy Ryan)25-1 3 Many Welcomes (Jemma Marshall) 11-1340 1 Collect Art (Hayley Turner) 7-4 Fav 2 Via Aurelia (J P Spencer) 3-13 Eye For The Girls (Catherine Gannon) 16-1410 1 Deacon Blues (J P Spencer) 5-6 Fav 2 Angus Newz (S Sanders) 12-1 3 Street Power (A Kirby) 11-4440 1 Fasette (Ashley Morgan) 7-1 2 Brave Decision (W A Carson) 9-4Fav 3 Sultan’s Choice (Andrew Heffernan) 9-2510 1 Bonnie Brae (S Sanders) 5-1 2 Sharp Eclipse (J P Spencer) 11-8 Fav3 Decency (N Mackay) 7-1540 1 Guga (S Sanders) 5-2 Fav 2 Blackstone Vegas (J Quinn) 5-1 3 Libre(Ashley Morgan) 6-1

TENNIS

ATP AEGON CHAMPIONSHIPS, LONDON (England)—2nd rnd: DSela (Isr) bt G Muller (Lux) 7-5 6-2, F Lopez (Spa) bt G Dimitrov(Bul) 6-2 6-4, M Fish (USA) bt S Giraldo (Col) 7-6 6-2, J Benneteau(Fra) bt K Anderson (SA) 7-5 6-3, D Istomin (Uzb) bt D Brown (Jam)7-6 (9-7) 6-4, R Nadal (Spa) bt M Daniel (Bra) 6-2 6-2, M Fish (USA)bt S Giraldo (Col) 7-6 6-2, J Benneteau (Fra) bt K Anderson (Rsa) 7-5 6-3, D Istomin (Uzb) bt D Brown (Jam) 7-6 6-4, R Nadal (Spa) bt MDaniel (Bra) 6-2 6-2, M Granollers (Spa) bt M Gicquel (Fra) 6-1 6-4,S Querrey (USA) bt R Ginepri (USA) 7-6 6-2, M Llodra (Fra) bt JLevine (USA) 6-4 6-2, N Djokovic (Ser) bt P Lorenzi (Ita) 6-3 6-3, XMalisse (Bel) bt B Tomic (Aus) 6-2 3-6 6-2, M Cilic (Cro) bt N Mahut(Fra) 6-7 6-3 6-2

SPORTS EDITOR JON COUCHemail [email protected]

Harry’s hopeful of luring protege JoeTOTTENHAM boss Harry Redknappsays it’s “not impossible” he will signJoe Cole this summer.

Spurs are odds-on favourite to landthe England midfielder but face stiff competition from rivals Arsenal.

Redknapp, who gave Cole his top-flight debut with West Ham as a

youngster, said: “It’s not impossible.He’s told us that he hasn’t decided any-thing yet and he hasn’t done anythingdefinite. So there’s a chance.

“I suppose it all depends on thefinancial side of it and everything else,but according to his agent he’s notmade up his mind yet.”

BY JON COUCH

FOOTBALL▲

WORLD CUP NEWS | IN BRIEFCameron flies flag for EnglandPRIME MINISTER David Cameron is toreplace the Union Jack above 10Downing Street with the flag of StGeorge in support of England’s WorldCup campaign.

Cameron allowed the flag to bechanged in a bid to unite Britain, withScotland, Wales and Northern Irelandfailing to qualify for the tournament.

He said: “I’m sure that everyone in thishouse, no matter what part of the UnitedKingdom they come from, will be cheer-ing ‘Come on England!’”

Iniesta doubt for SpainSPAIN have a fresh injury concern overplaymaker Andreas Iniesta.

The Barcelona midfielder was taken onin the first half of their 6-0 warm-up win

over Poland on Tuesday night with aminor thigh injury.

Liverpool striker Fernando Torres net-ted twice for the Spanish and says he hasfully recovered from his knee injury.

“The injury has passed and now I’mable to help my team-mates, so it’s timeto enjoy it,” he said.

Photographer robbed at gunpointA WORLD CUP photographer was held atgunpoint during a burglary of lodges usedby Spanish and Portuguese journalists onTuesday night, it has been revealed.

Antonio Simoes was woken up by twoburglars, who held him down while theytook his camera, cash and credit cards.

Laptops, mobile phones and cash fromother rooms were also stolen in the lodgein Magaliesburg town, north of Johannesburg.

Simoes said: “It was just two minutes

but it felt like two hours. It was the scari-est thing that has ever happened to me.”

UBER-COOL Fabio Capello showed thefirst signs of feeling the strain yester-day after launching an astonishing

verbal attack on photographers atEngland’s World Cup training base.

The Three Lions boss took excep-tion to his players being filmed inside

their Royal Bafokeng camp andstormed out to confront the camera-

men, bellowing “Why do you takephotos of the rooms? No excuses”.

After staring angrily at the snap-pers, Capello turned away and head-ed towards the training pitch to leada behind-closed-doors session aheadof Saturday’s World Cup opener withUSA. It is the first time the usually-calm Italian has lost his temper pub-licly, although it is believed to havestemmed from his displeasure at hissquad being filmed while on safari on

Tuesday.It is also believed the room in ques-

tion houses a medical area where oneor two members of the squad weresaid to be undergoing treatment.

Thankfully, Capello looks to have aclean bill of health for the USA game

with Shaun Wright-Phillips and goal-keeper David James both returning intraining after recovering from slightknee injuries.

The only absentees were Ledley Kingand James Milner, who trained in thegym – King as a result of his on-going

knee problem and Milner after recov-ering from a high temperature.

Capello snaps at snappers asWorld Cup pressure mounts

BY JON COUCH

WORLD CUP2010

With Cole, Ballack and Belletti off the wage bill, boss Carlo Ancelotti isnow free to up his bid to replace

Ballack with fellow German BastianSchweinsteiger, and Cole withLiverpool winger Yossi Benayoun.

Tottenham 4/6Arsenal 5/2Manchester Utd 6/1Manchester City 8/1

Real Madrid 12/1

WHERE WILL COLE END UP?

8/9/2019 CityAM 10/06/2010


MARK CUETO says England can leavethe Wallabies hopping mad with ashock victory in the first Test onSaturday.

The Sale wing is an expected starterin Perth after sitting out the 28-28draw with the Australian Barbariansin the opening tour match on

Tuesday.But despite Martin Johnson’s men

being massive underdogs in theirquest for only a third victory over the

Wallabies in their own back yard,Cueto says confidence in the camp ishigh.

“There’s no point going into any game without believing that you’regoing to win,” the 30-year-old said.“You’ve obviously got to appreciate

who you’re playing and respect who you’re playing and we respect the Aussies massively, particularly outhere in their own back yard.

“But if everyone produces a 100 percent performance on Saturday then

we’re definitely capable of winningthe game. It’s going to be tight and wedon’t expect to get the upper hand inany area particularly, but if we dothen happy days.”

Johnson received some welcomenews ahead of Saturday’s Test withthe news that the two stampingcharges lodged against lock Dave

Attwood from the Barbarians game were dismissed yesterday.

Rugby Football Union chiefs arguedthe case could not be impartial as theciting commissioner was Australian.

Johnson has also moved to call up

Northampton’s Phil Dowson to his 44-man squad to replace the injuredHendre Foure.

Leeds flanker Foure will returnhome on Sunday after suffering calf and ankle strains in the Barbariansmatch.l Meanwhile, UK Sport boss John

Steele has been named as the RFU’snew chief executive.

The former Northampton playerand coach succeeds Francis Baron,

who is stepping down after 12 years.

We’ll silencethe Wallabies,vows CuetoBY JON COUCH

RUGBY UNION▲

Sport 31CITYA.M. 10 JUNE 2010

SPORT | IN BRIEF

Massa pens new Ferrari dealFORMULA ONE: Felipe Massa hassigned a new two-year deal to keep himat Ferrari until the end of 2012.

The Brazilian’s future was broughtinto question after consistently strug-gling to match the pace of team-mateFernando Alonso this year.

Indeed, the announcement comes justdays after Mark Webber – touted as apossible replacement for Massa – signeda contract extension at Red Bull.

Massa said: “It’s a matter of pride tocontinue working with a team that Iregard as my second family.”

Dilshan fires Tri-series winCRICKET: Tillakaratne Dilshan struck anunbeaten century to help Sri Lankarecord an emphatic nine-wicket winover Zimbabwe to clinch the one-day tri-angular series in Harare.

Zimbabwe, who eliminated India andbeat Sri Lanka in the group stages,could only manage 199 with TatendaTaibu top scoring with 71.

But Dilshan led the reply in fine style,smashing 14 fours in a 102-ball knock of 108, as Sri Lanka cruised to victory with92 balls to spare.

Great Leighs close to the endRACING: Great Leighs, Britain’s firstnew racecourse for 81 years, looks setfor redevelopment after no buyer cameforward.

The course, near Chelmsford, wentinto administration in January last year,

just nine months after opening.Administrators, Deloitte, have been

desperately trying to find a buyer buthave now given up hope, promptingtalks with principal lender, RBS, about“the next step”.

RAFA’S THE KING OF QUEEN’S

WORLD No1 Rafael Nadal began his grass-court season with a comfortable 6-2, 6-2 victoryover Brazilian Marcos Daniel in the Aegon Championship at Queen’s Club. Nadal is joinedin round three by second seed Novak Djokovic, who beat Italy’s Paolo Lorenzi 6-3, 6-3. Britain’s No1 Andy Murray is back on court for his third-round match today when hetakes on Mardy Fish after the American beat Columbian Santiago Giraldo. Picture: PA

8/9/2019 CityAM 10/06/2010


cityam 10/06/2010

Documents